Mission Viejo Man Gets 5 Years in Phone Fraud

From Times Staff and Wire Reports

A Mission Viejo man was sentenced Monday to more than five years in federal prison for selling investments in telephone sex and psychic lines that were really part of a $4.9-million scam.

Michael Freedman, 46, was also ordered to pay nearly $3 million in restitution to about 450 investors in Asia-Pacific Spectrum Communications from 1995 to 1998.

Freedman pleaded guilty in January to wire fraud, mail fraud and money laundering in the scheme. Prosecutors said investors each paid as much as $4,500 for the phone lines, but Freedman used the money to pay other investors, buy a home and pay bills.