Michael Feinberg, 73, and Betsy Feinberg, 80, both of Tucson, Arizona, were found guilty by a jury of all charges related to a scheme to defraud investors out of approximately $5 million. The charges included one count of conspiracy to commit securities fraud, one count of conspiracy to commit wire fraud, and five counts of securities fraud. The Feinbergs are scheduled for sentencing on June 15, 2022.
According to the evidence presented at trial, Michael and Betsy Feinberg operated Catharon Software Corporation as husband and wife. The Feinbergs claimed to have produced revolutionary software called VDelta that would generate enormous returns for investors and philanthropists. For almost 15 years, the couple enticed investors with false promises about the software’s completion, release date, and capabilities. Their victims included friends and associates recruited through various community organizations in Sedona, Arizona, where the Feinbergs resided at the time. In addition to paying themselves salaries, the Feinbergs used investor money for a wide variety of personal expenses, including their home mortgage.