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Up to 23 years in prison possible in investor fraud case

RAPID CITY (AP) -- A former Rapid City investment adviser faces up to 23 years in federal prison after pleading guilty to defrauding clients of more than $4 million and evading income taxes.

RAPID CITY (AP) - A former Rapid City investment adviser faces up to 23 years in federal prison after pleading guilty to defrauding clients of more than $4 million and evading income taxes.

Mike Lundy admitted to convincing clients to put money in a fake investment company, then placing the money in his bank account. Lundy was a registered investment adviser at the time and a commissioned representative of Primerica, a North American financial services firm.

The Rapid City Journal reports Lundy says he used some of the money for personal expenses, including payments for home remodeling, vacations and a new Jeep. He collected a total of $4.2 million from about 80 investors.

Lundy's sentencing is scheduled for May 19 at the federal courthouse in Rapid City.

Related Topics: CRIMEFINANCE
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