Man Who Defrauded Elderly Pleads Guilty
From Staff and Wire Reports
Frank Cossey, former owner of a Brea-based real estate investment firm that promised high profits, pleaded guilty Friday to stealing $146 million from 1,850 investors and using the money to buy racehorses and live lavishly.
In a plea bargain with prosecutors, Cossey will receive a five-year prison sentence. To settle civil charges brought by the Securities and Exchange Commission, Cossey has agreed to pay $10.9 million and forfeit his $1-million home.
Cossey, 56, was chief executive of TLC America Inc., which targeted elderly investors, from 1997 to 2000. The average age of victims is 67, court documents said.
Cossey also pleaded guilty to income tax evasion.
