P.V. man found guilty of fraud in $40 million scheme

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PHOENIX - A federal jury has convicted a Paradise Valley man of conspiracy to commit mail fraud and three counts of mail fraud for running a scheme that netted more than $40 million from duped investors.

The U.S. attorney's office in Phoenix says 60-year-old David Steven Goldfarb faces up to 20 years in prison plus fines following Monday's convictions.

Prosecutors alleged that Goldfarb and three co-defendants sold investors 338 contracts to set up rehabilitation facilities between 1999 and 2003, promising them high returns on their investments and collecting steep fees. They continued pitching the investments even when they knew returns were coming up well below promises.

Four other people who were paid to give testimonials and three of Goldfarb's partners pleaded guilty to various mail fraud charges. Charges are pending against one other man.