Newport man guilty of wire fraud back in custody

A Newport Beach man who pleaded guilty to wire fraud in a high-yield investment program is back in federal custody after he was found at a hospital, authorities said Wednesday.

A bench warrant was issued Monday when Gerald M. Shaw did not show up in federal court for sentencing to the one count of wire fraud he pleaded guilty to in July of 2010, according to court records.

Shaw is accused of soliciting investments, sometimes from clients, with the promise of trading European bank instruments, and using his clients’ money for business and personal expenses, according to an FBI news release.

Shaw’s attorney, James D. Riddet, filed a motion Dec. 6 to continue the sentencing scheduled for Monday due to medical treatment for Shaw, but Judge Cormac Carney denied the motion and said the Federal Bureau of Prisons was equipped to treat him, according to federal court documents.

A previous sentencing date of March 11 was set for Shaw, but he was not in court after being hospitalized with symptoms of immobility, nausea, lightheadedness and vertigo. These symptoms were caused by a 2-centimeter mass at the back of his brain, his attorney said in a document filed with the court.

Shaw faces a maximum sentence of 20 years in prison and restitution to victims. He was disbarred in July of this year, according to the state bar.

—Lauren Williams

Twitter: @lawilliams30