A Tucson couple, Michael Feinberg and Betsy Feinberg were sentenced to 60 months in prison after a jury found them guilty of multiple counts of securities and wire fraud.
Michael, age 73, and Betsy, age 80 operated Catharon Software Corporation as husband and wife. The Feinbergs claimed they had produced revolutionary software called VDelta that would generate enormous returns for investors and philanthropists. For almost 15 years, the Feinbergs lured investors with false promises about the software’s completion, release date, and capabilities. Their victims included friends and associates recruited through various community organizations in Sedona, Arizona, where the Feinbergs resided at the time. In addition to paying themselves salaries, the Feinbergs used investor money for a wide variety of personal expenses, including their home mortgage.
A restitution hearing to address the approximately $5 million in victim losses is scheduled for December 13, 2022.
Their sentences are to be followed by three years of supervised release.