An eastern Iowa man will serve over four years in prison in an investment fraud case. Fifty-eight-year-old Jefferey Kinseth of Cedar Rapids pled guilty in July to one count of wire fraud in connection with what court documents called a Ponzi scheme.
He convinced at least 11 people to pay him over $1-million for an investment pool he called Virtual Vision. Kinseth admitted to telling those involved he would invest all of their funds — when he in fact was using some of the money to pay earlier investors in the plan.
He also admitted to creating false account statements to conceal the losses from the investments. Kinseth was sentenced to 51 months in prison, ordered to pay $1.1-million in restitution and will have to serve 3 years probation once released.