MONTGOMERY, Ala. (AP) – An admitted con man who scammed nearly $2 million from investors told a federal judge that he was “disgusted” with himself but asked to serve at least part of his sentence on home confinement so he can access a computer to make money and repay his victims.
Kyle Sandler, 43, appeared in federal court for a sentencing hearing after pleading guilty to wire and securities fraud. U.S. District Judge Keith Watkins said sentence guidelines indicate Sandler should spend between 63 to 78 months in prison.
Watkins delayed a sentencing decision to weigh whether Sandler would even qualify for home confinement under “brand new” changes in federal sentencing law.
During the sentencing hearing, Sandler said his crimes had been motivated by greed but he would dedicate the rest of his life to repaying 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.”
Sandler said that if he was allowed to serve part of his sentence on home confinement that he could use his skills to make money and beginning pay $1.9 million in restitution.
Prosecutors objected to Sandler’s request.
“Home confinement is not appropriate,” Assistant U.S. Attorney Denise O. Simpson said. “If we do not impose a sentence of 63 months, it will not deter.”
Four of Sandler’s victims attended the court hearing. One urged the judge to hand down a stiff sentence.
“I urge you to sentence him to the maximum that you can,” said Chuck Wacker, who invested with Sandler.
Sandler moved to the east Alabama town of Opelika in 2011 and later opened a business incubator called the Round House. He pleaded guilty last year to fraud for taking about $1.9 million from more than 50 investors.
Sandler told The Associated Press in a series of recent 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.
Wacker said he was particularly concerned that Sandler exploited a teen investor to lure investors.
Gap Inc. to split into 2 companies
Gap Inc. announced Thursday that it’s creating two independent publicly traded companies – low-priced Old Navy and a yet-to-be named company, which will consist of the iconic Gap brand, Athleta, Banana Republic, Intermix and Hill City.
The San Francisco-based company says the spin-off will enable each company to focus on flexibility and pare down costs.
The moves, which followed a comprehensive board review, come as Old Navy has been thriving, while Gap and Banana Republic have struggled.
Gap says each company now requires a different strategy to thrive.
Gap’s current CEO, Art Peck, will hold the same position at the new company after the separation. Sonia Syngal, current CEO of Old Navy, will continue to lead the brand as a stand-alone company.
Delta, American fined for delays
The government has fined American Airlines and Delta Air Lines for several instances where passengers were stuck on planes that spent over three hours on airport tarmacs.
The Department of Transportation said Thursday it is fining American $1 million and Delta $750,000 for violating rules prohibiting tarmac delays of more than three hours for domestic flights and four hours for international trips.
The agency said that 13 flights operated by American at various U.S. airports between December 2015 and January 2017 violated its tarmac-delay rules. Delta was dinged for 11 flights between January 2017 and February 2018.
American will be credited $450,000 for compensation provided to passengers and Delta will be credited $450,000.
Mortgage rates steady this week
U.S. long-term mortgage rates were unchanged this week, possibly helping affordability as home borrowing costs have been steadily declining since early November.
Mortgage buyer Freddie Mac says the average rate on the benchmark 30-year, fixed-rate mortgage held at 4.35 percent for the second straight week. This represents a slight decline from an average of 4.43 percent a year ago.
The average rate this week for 15-year, fixed-rate loans declined to 3.77 percent from 3.78 percent.