A former securities broker at a defunct Sherman Oaks investment firm was sentenced to prison Tuesday for wire fraud associated with a real estate investment scam that cost victims about $4 million, the Justice Department announced.
Jonathan Greenfield, 50, of West Hills, received 18 months from District Judge Dale S. Fischer at the federal court in Los Angeles. Greenfield pleaded guilty in December 2013 to two wire fraud counts, admitting that he provided his clients at brokerage Morgan Peabody with false information about a real estate investment fund called the Sherwood Secured Investment Fund LLC.
The Sherwood fund was created by David Williams, former chief executive at Morgan Peabody. He pleaded guilty in May and is awaiting sentencing. The Sherwood fund offered a 9 percent annual return on investments made in real estate and real estate companies, but Williams admitted that he used the majority of investor money from the Sherwood Fund to pay for personal expenses.
Greenfield was not charged with knowing that Williams would misappropriate the money, but was charged with misrepresenting the risk and purpose of the investment to clients.
In addition to the prison term, Greenfield was ordered to pay victims restitution of $359,497.
The investigation was conducted by the FBI and IRS.