Pair convicted in Calif. for investment scam

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SANTA ANA, Calif. (AP) – Two men have been convicted by a California jury of conspiring to defraud a wealthy investor out of $1 billion in a high-yield investment scam.

William Ferry and Dennis Clinton were each found guilty Tuesday in Santa Ana, Calif., of one count of conspiracy, six counts of wire fraud and two counts of mail fraud. They face up to life in prison when they are sentenced in February.

Federal prosecutors said Ferry and Clinton touted an investment program allegedly backed by the Federal Reserve that promised high returns with little to no risk to the principal. The investor they targeted turned out to be an undercover FBI team.

Authorities said Ferry and Clinton falsely claimed the program generated money for humanitarian purposes, such as Hurricane Katrina relief.

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