Former investment firm co-founder sentenced

August 31, 2011 2:42:26 AM PDT
A Dallas-area man who co-founded an investment firm has been sentenced to seven years in prison and ordered to pay $1.9 million in restitution to 62 investors who lost money.

U.S. Attorney James T. Jacks says that 61-year-old James A. Testa of Carrollton was sentenced Friday. Testa pleaded guilty in 2009 to engaging in monetary transactions in criminally derived property.

Michael R. Rouse, also a Golden Gate Real Estate Investment Trust co-founder, remains a fugitive. He was sentenced in absentia last month to 17 1/2 years in prison and also ordered to pay restitution after being convicted of charges relating to his operation of the company.

Prosecutors say the two told victims that they were investing in real estate, but most of the money was never invested in real estate.

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