Alleged Ponzi schemer faces 280 years in prison

A Tustin man accused of defrauding Orange County residents, including a Newport Beach man, out of money in an alleged Ponzi scheme faces more than 200 years behind bars, federal prosecutors said Wednesday.

James Halstead, 61, was named in a 16-count indictment that charges him and Orange County attorney Jeanne Rowzee, 49, of bilking victims of their money. The two promised returns between 25% and 35%, prosecutors said.

Among their victims, prosecutors claim, was a Newport Beach man who thought he was investing money in third-party insurance premiums. Instead, authorities say his was used for the couple’s second, concurrent scheme.

Halstead is scheduled to appear in U.S. District Court for an arraignment Sept. 22. He faces up to 280 years in prison.

— Joseph Serna