NEWPORT NEWS, Va. (WAVY) — A Virginia Beach man is facing a decade in prison and must pay millions of dollars in restitution for a fraud scheme that resulted in losses of at least $3.9 million.
The U.S. Attorney’s Office said 58-year-old Edward Zinner, the operater of Ocean Equity, and other acting on his behalf misled investors and lenders in order to get $4.5 million in funds.
Zinner also got six business loans for the company totally $3 million. With the loans, Zinner falsely claimed they would not be used for personal, family, or household purposes.
Prosecutors said Zinner went on to spend large amounts of company money for his own personal uses — which included many things from gambling and day-trading to travel, medical bills and credit card payments.
Zinner closed Ocean Equity in 2016, still owing at least $3.9 million in business loans as well as loans from private investors. He was sentenced Thursday to 10 years in prison, and ordered to pay $4 million in restitution to his victims.
Zinner also got three years of supervised release.
