A man from the US state of Utah who stole money from four people - including a 73 year-old widow - as part of an investment scheme has avoided prison through plea-bargaining with the state prosecutor.

Even though the judge hearing the case wanted to jail Michael Ostler, she had to order on the state prosecutors' recommendation a sentence of 36 months probation, 500 hours community service and restitution of US$130,000.

L/C promises

Ostler's fraud involved promising investors letters of credit (L/Cs) valued at US$2.5 million from a European bank.

In a classic advance fee fraud move, each investor paid US15,000 for their L/C.

No L/Cs received

Ostler told the investors they could withdraw money from their L/C to make loans, invest, buy real estate or pay off debts. But none of them received the L/Cs or their money back.

Instead, the court heard that Ostler used the money for personal expenses such as domestic bills and travel.

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