SIMI VALLEY : Woman Convicted in $1-Million Fraud
A Simi Valley woman was convicted Monday in federal court of helping run a $1-million fraud scheme that sold bogus fashion accessory distributorships to hapless investors.
A federal jury convicted Judith Lee Collins, 50, of 12 counts of aiding and abetting Herbert Schacter of Palm Springs in running a scheme that lasted eight years. Prosecutors persuaded the jurors that the two would woo investors to sink money into distributorships that the pair contended sold designer sunglasses, jewelry and wristwatches. The same jury convicted Schacter of 22 counts, including mail fraud and money laundering.
Schacter and Collins would advertise in newspapers in the western United States and Canada, boasting that Schacter owned three distribution facilities in Southern California.
Schacter owned no such distributorships and paid off new investors with the money collected from the old investors.
Collins faces an 80-year prison term when she is sentenced Jan. 31. Schacter faces up to 225 years in prison.
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