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Man sentenced to 5 years in prison for scamming Alabama city for $1.9M

ART MERIPOL VIA AP / 2015

Kyle Sandler poses for a photo at The Round House in Opelika, Ala. A federal judge sentenced Sandler, who pleaded guilty to scamming an Alabama city, to spend 63 months in prison and ordered him to return $1.9 million to investors.

MONTGOMERY, ALA. >> The founder of business incubator who pleaded guilty to scamming residents of an Alabama city was sentenced today to more than five years in prison and ordered to return $1.9 million to investors.

Kyle Sandler, 43, moved to the east Alabama town of Opelika (Oh-puh-LIE-kuh) in 2011 and opened the Round House, where he raised about $1.9 million from more than 70 investors. Sandler pleaded guilty last year to fraud and U.S. District Judge W. Keith Watkins handed down his 63-month sentence Tuesday in Montgomery federal court.

U.S. Attorney Louis Franklin said Sandler “violated the trust of his investors with lies and deception.”

“They trusted him with their hard-earned money, and he used it as his personal piggybank,” Franklin said.

Sandler told The Associated Press in a series of telephone interviews from jail that he falsely portrayed himself as a one-time Google executive and acted out of greed. He said he used John McAfee, who developed early internet security software, and Taylor Rosenthal, a teen who had an idea for a new kind of first aid vending machine, to help gain publicity for his operation.

Chuck Wacker, who invested with Sandler, urged Watkins at the sentencing hearing last month to impose the maximum sentence possible. Wacker said he was particularly concerned that Sandler exploited a teen investor to lure investors.

Wearing an orange jail jumpsuit and shackles last month, Sandler told Watkins that he would dedicate the rest of his life to repaying his victims.

“I’m disgusted with myself,” Sandler told the judge. “I’m blessed with a certain amount of intelligence. I used it to hurt people and take their money.”

Watkins on Tuesday said Sandler had expressed “good intentions,” as a lot of criminal defendants do.

“Your job from this day forward is to make your actions align with your words,” Watkins told Sandler.

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