Currencies trader sentenced to 24 years for fraud

Associated Press - November 19, 2009 3:25 PM ET

CHATTANOOGA, Tenn. (AP) - A foreign currencies trader who cheated investors in more than 20 states to support a lavish lifestyle and buy presents for a girlfriend has been sentenced to 24 years in prison.

According to a news release from the U.S. Attorney's Office for the Eastern District of Tennessee, a federal judge in Chattanooga also ordered Luis Hiram Rivas to pay more than $18 million in restitution.

In a deal with prosecutors, the 56-year-old pleaded guilty to wire fraud, money laundering and bankruptcy.

Indictments in Tennessee and South Carolina accused him of running a Ponzi scheme in which he cheated investors out of more than $18 million while promising 60 percent returns on their investments.

U.S. Bankruptcy Trustee Grey Steed has said about 495 people invested and some lost entire retirement funds.