The U.S. Securities and Exchange Commission announced today that a prime bank fraudster who victimized U.S. and Canadian investors has been sentenced to 30 years in prison.

The SEC reports that John Wayne Zidar, 60, was sentenced to 30 years in prison based upon his role in a fraudulent prime bank scheme that raised more than $74 million from at least 3,200 U.S. and Canadian investors. Zidar was convicted on multiple counts of wire fraud, mail fraud and securities fraud in the criminal trial, in which five other people were either convicted or pleaded guilty.

The criminal case followed the filing of an action by the SEC in May 2000, in which emergency relief including an asset freeze was obtained. The SEC’s complaint alleged that Zidar and other named defendants promised investors in two programs, Oakleaf International and Rosewood International, a return of 120% per year, as well as preservation of their invested funds, through an unspecified “trading program.” The complaint alleged that, contrary to these representations, the defendants misappropriated investor money for personal expenses and failed to engage in any profitable investments.

In the civil case, which has been stayed pending the resolution of the parallel criminal action, the commission also obtained the appointment of a receiver to marshal assets and distribute them back to defrauded investors.

To date, the receiver has collected about US$20 million on behalf of investors. It will propose a distribution plan following the conclusion of the case.