A federal judge has sentenced Santa Barbara resident Darrell Aviss to just over 11 years in prison for operating a Ponzi scheme in which he stole approximately $14 million from victims who thought their investments were buying annuities from Swiss insurance companies.
Judge Stanley Blumenfeld Jr. described Aviss as “cruel, callous, and self-absorbed,” adding “the devastation in this case is real.” Most of his victims were elderly, and one lost more than $9.7 million to his ploy. Another, who had recently been diagnosed with cancer, lost $400,000, according to the prosecution’s sentencing memorandum.
“Aviss has essentially been living a life of pure crime for about a decade,” prosecutors said. “Based on the financial records and his statements to the probation officer, Aviss has had no source of money – no real job – since at least 2012, apart from the money he stole from the victims, including retirees who denied themselves luxuries to save up the nest eggs Aviss stole.”
Aviss ran his Ponzi scheme through the summer of 2020, soliciting money from people who wanted to purchase annuities from Swiss insurance companies. Aviss claimed the annuities were safe and secure, and, in some instances, he promised victims they would receive hefty returns of five to seven percent.
But Aviss would instead use the ill-gotten funds to support a…
