Tucson Couple Sentenced to 5 Years for Stealing $5 Million from Investors

On November 15, 2022, Michael Feinberg, 73, and Betsy Feinberg, 80, both of Tucson, Arizona, were sentenced by United States District Judge James A. Soto to 60 months in prison, followed by three years of supervised release. In April 2022, a jury found the Feinbergs guilty of multiple counts of securities and wire fraud.

Michael and Betsy Feinberg operated Catharon Software Corporation as husband and wife. The Feinbergs claimed they had produced revolutionary software called VDelta that would generate enormous returns for investors and philanthropists.

For almost 15 years, the Feinbergs lured 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.

A restitution hearing to address the approximately $5 million in victim losses is scheduled for December 13, 2022.

Escape with Vagary