BULLETIN: Peter Jerald Frommer, California Ponzi Schemer, Sentenced To 108 Months In Prison; Victims Tell Tales Of Devastation

BULLETIN: Peter Jerald Frommer has been sentenced to nine years in federal prison for a Ponzi scheme that fleeced investors of more than $8 million. The scheme itself gathered $13 million, and Frommer, 35, advertised “guaranteed” returns of up to 15 percent in a period of only six weeks.

The scheme was known as “Cap Exchange” and “Cap X.” Frommer, 35, acquired a $20 million  mansion in Malibu with fraud proceeds, prosecutors said.

Victims described Frommer as a con man who caused horrible pain and ruined dreams.

“The only event in my lifetime that was worse was the death of my child,” one victim was quoted as saying in a brief by prosecutors.

“My son values his education and was very intent on attending a prestigious California university,” another victim wrote. “Unfortunately, he has not been able to attend that college because of the change in financial circumstances caused by Peter Frommer’s actions. What value do you put on the quashing of a teen’s dreams?”

One of Frommer’s victims said the con man took advantage of vulnerable people and that the scheme ultimately spread to affect entire families.

“I am sorry to admit my family was victimized by Peter Frommer,” the victim said. “A close relative of ours introduced us when my family and I were in California seeking cancer treatment for our youngest son. In a moment of weakness, when we were struggling with the cost of his cancer treatment, we were duped and convinced ourselves, our adult children, and a sister that this was a smart and safe investment. We made a terrible mistake.”

U.S. District Judge George H. Wu also ordered Frommer to pay $8.1 million in restitution.

See earlier story on Frommer.