Luis Fernandez, of Folsom, has been sentenced to almost five years in prison in connection with an alleged affinity fraud and investment fraud scheme that targeted investors native to the Dominican Republic. Fernandez owned Fernandez Financial, Inc. and is accused of luring in 50 investors with the Ponzi scheme-style scam. According to court documents, Fernandez offered monthly returns of 3% to investors. He brought in $7.4 million in this fashion, but he is accused of using the money to pay off earlier investors and himself.Although some of the money was actually invested, Fernandez sustained losses for five out of the six years he ran the alleged scam. It is alleged that Fernandez misrepresented the investments, and reported that his company was doing well regardless of the performance of the market. Authorities say he concealed his losses and provided investors with false documentation. Despite these losses, officials say Fernandez was able to pocket close to $1 million and purchase an expensive home and car. Fernandez has been sentenced to four years and nine months in prison. He will be required to pay restitution to investors and has also been ordered to serve three years of supervised release after the prison sentence.We represent investors nationwide in stockbroker mediation, arbitration, and litigation. If you have questions about your options after losing money in a Ponzi scheme, speak with one of our experienced and respected securities fraud attorneys today.