A Seaside man, Michael Swanson, was convicted Wednesday of federal mail fraud, securities fraud and conspiracy, all involving investment management companies that diverted more than $4 million for personal use by the partners.
Swanson, 62, was a partner in the Monterey-based firm of APS Funding, which offered "hard-money," short-term, high-interest loans, mostly for business and real estate development. Funds operated by APS included GCF Investment and the Greenlight Fund.
Another partner, Beth Pina, pleaded guilty to similar charges in December 2012, and is scheduled to be sentenced in March in federal court in San Jose.
Swanson and Pina were indicted along with financial talk show host Barbra Alexander of Monterey as a result of investigation by the Securities and Exchange Commission, the FBI and the Monterey County District Attorney's Office.
Alexander has pleaded innocent and is scheduled for trial starting Nov. 4.
Federal prosecutors said APS Funding attracted few borrowers and made few loans but defrauded most of their 60 investors, including many from Monterey County. For a time, prosecutors said, APS operated as a pyramid scheme, with money from new investors being used to make payments to old investors.