Three jailed for Ponzi scheme participation

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Story Created: Oct 19, 2012 at 11:41 AM CDT

Story Updated: Oct 19, 2012 at 11:41 AM CDT

They had pleaded guilty to defrauding more than 250 investors out of $29 million.

And now, three Central Nebraskans will spend years in jail for their crimes and pay more than $16 million in restitution.

Stella Levea and James Masat, both former principals of First Americans Insurance Service, were sentenced in U.S. District Court to 8 years in prison. Kenneth Mottin was sentenced to 5.

The company they operated had been under investigation since a 2009 bankruptcy filing.

Some said their company was working like a Ponzi scheme. Investors were promised unusually high returns and early investors were paid out with money from later investors.

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