Media Investment Guru Guilty in Fraud Case

Radio and television investment guru Richard Reynolds was convicted in Los Angeles on Thursday of federal mail fraud and witness tampering charges for defrauding clients out of $1.3 million.

Reynolds faces up to 85 years in prison and $3.75 million in fines when he is sentenced by U.S. District Judge Manuel Real on Dec. 2. The Burbank-based investment adviser produced a nationally syndicated financial radio show called “The Reynolds Rap,” and a newsletter and television show called “The Reynolds Report.”

According to prosecutors, Reynolds told prospective clients that he was a self-made millionaire whose clients had earned rates of return from 48% up to 1000% a year. Clients gave him large sums to open “managed accounts.” But while their monthly statements showed substantial, continual profits, he used the money for himself and to pay the expenses of his business, prosecutors said.