Gina Champion-Cain was accused of loan fraud.
As per the U.S. District, she will be receiving 15 years imprisonment for the $400M Ponzi scheme.
According to Investopedia, a Ponzi scheme is a scam that generates returns for earlier investors with money taken from later investors.
She raised more than $ 350 million from more than 500 investors and promised to use the invested money to make loans to business owners who were attempting to acquire California liquor licenses.
Furthermore, she was charged for using $10 million from the investment amount to support her failing Patio restaurants and other retail businesses.
