Nevada man again gets 30 years for $73M fraud

A former Nevada man has once again been sentenced to 30 years in prison for a Ponzi scheme that cheated 3,500 people out of $73 million.

John W. Zidar, 66, formerly of Gardnerville, Nev., was initially sentenced in 2003, but the hearing was held again because of recent Supreme Court rulings that made sentencing guidelines advisory rather than mandatory.

U.S. District Judge Ricardo S. Martinez said Friday he believed the 30-year term was appropriate, saying Zidar caused widespread financial damage. Prosecutors described him as a small-time Bernard Madoff, and said he diverted much of the money to himself.

From 1997 to 2000, Zidar and his co-defendants persuaded 3,500 people to invest in his Enumclaw- and Lakewood-based funds. Investigators located about $25 million, and it was returned to the victims, who received about 40 cents for each dollar they had invested.

© 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy.