Man Sentenced to 51-Month Term in $10-Million Investment Scheme

A Los Angeles man was sentenced to 51 months in prison Monday for his part in a scheme to bilk about 1,300 investors out of an estimated $10 million.

At the sentencing hearing, U.S. Dist. Judge Edward Rafeedie called Epigmenio Sandoval “one of the biggest liars ever to testify in this court” before imposing the strictest sentence he could under federal guidelines.

Many of the Latino victims, according to Assistant U.S. Atty. Ellyn Linsay, lost their life savings or college and retirement funds.

Sandoval, 39, was convicted Jan. 19 on 11 counts of mail fraud.

His co-defendants, Anthony Fadel, 31, and Jose Castellanos, 36, pleaded guilty to similar charges in 1994. Fadel was sentenced to 57 months in prison and Castellanos received a two-year term.

The three men ran Fadel Group Investment Corp., which solicited investors via Spanish-language newspapers, radio and television stations, Lindsay said.

The defendants, Lindsay said, persuaded investors to send money to the Fadel group, which promised return rates of up to 24%. Fadel, Sandoval and Castellanos promised to provide valuable gems and property deeds as security, the prosecutor said. Instead, she said, the three spent the money on themselves.