Former La Quinta resident sentenced to five years in federal prison for defrauding investors
A former La Quinta resident was sentenced to five years in federal prison this week for taking millions of dollars from investors and using the money to pay off gambling losses and fund other personal expenses.
Robert Charles Butler of Las Vegas, 50, was sentenced Monday after pleading guilty to taking at least $7 million from victims, including at least one family member, as well as friends of the relative.
Prosecutors say that while living in La Quinta, Butler solicited money from the victims after “falsely claiming to be a successful day trader with a proprietary trading program who had created private investment funds.”
Butler told the victims to expect up to a 10 percent return on their investments when in reality, he had suffered ”substantial losses as a result of his trading.”
Despite the losses, he sent victims fake account statements boasting of profits and showcased a “lavish home office containing seven to eight computer screens showing stock activity,” which prosecutors said led many of the investors to give Butler funds withdrawn from their retirement accounts.
Prosecutors say Butler admitted causing more than $2.5 million in losses, though the exact loss figure will be determined at a March 27 restitution hearing.
