Man Indicted on Bilk Charges
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LOS ANGELES — A Huntington Beach man has been indicted on charges that he bilked investors out of more than $800,000 in a metals scam.
John Lefebvre, 53, has been charged with seven counts of mail fraud and faces a maximum sentence of 20 years in jail and a $1-million fine.
Lefebvre pleaded not guilty to the charges Monday. Bail was set at $75,000.
Assistant U.S. Atty. David Hoffer said Lefebvre defrauded hundreds of investors in the late 1980s through his company, Strategic Metal Investments Inc. in Huntington Beach.
Strategic Metal specialized in the sale of metals such as bismuth, cadmium and titanium, which are used in the defense industry.
Prosecutors claim that customers paid Lefebvre to buy metals for them but that he sometimes sold the goods and kept the money for himself.
Hoffer said Lefebvre used at least some of the money to buy a yacht and a Mercedes-Benz. Lefebvre could not be reached for comment Monday.
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