California Agent Pleads to Investment Scam

October 1, 2009

A Southern California insurance salesman accused of blowing investors’ money on sports cars, a mistress and real estate has pleaded guilty to federal fraud and money-laundering charges.

James R. Halstead entered the plea Monday and agreed to make restitution to his victims.

The 62-year-old will be sentenced in January and faces a maximum of 60 years in prison.

Halstead was also charged in April 2008 with drugging Olympic ice skater Oksana Grishuk at a dinner meeting, but prosecutors dropped the charges.

Halstead’s alleged partner in the financial scam struck a plea deal last year and is free on bail while awaiting sentencing.

The state’s Department of Insurance had earlier revoked Halstead’s license, in October. The state has the authority to revoke an agent’s license if that agent has been convicted of a felony. Halstead had pleaded guilty to five felony charges in 1998, after being charged with running an investment scam to sell crude oil.

In this case, Halstead and his partner, Irvine securities lawyer, Jeanne M. Rowzee, took in about $22 million from duped investors, according to the Los Angeles Times.

The two told investors they were putting the money into securities known as private investment in public equity. They claimed investors could earn returns as high as 40% in just three months.

Topics California Agencies

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Latest Comments

  • October 2, 2009 at 10:20 am
    True Believer says:
    Wait a minute! 40% return in just 3 months? What if it is true? I want in on it. Where do I sign up? I have been looking for a place to put my money for a high return ever sin... read more
  • October 1, 2009 at 3:25 am
    jenn says:
    What I want to know is, why didn't the insurance dept revoke his license in 98 when he was charged with 5 counts of felony charges instead of waiting till Oct 08? Maybe this ... read more
  • October 1, 2009 at 3:18 am
    Ken says:
    I don't know what you're talking about Surgeon. The guy seems like a class act all the way. If you believe the above, please consult websters dictionary for the definition of ... read more

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