Well-known biotech investor G. Steven Burrill has been sentenced to 30 months in federal prison on charges of fraud and tax evasion, according to an Xconomy report.
Burrill faced accusations of diverting more than $18 million from the $283 million Burrill Life Sciences Capital Fund III between 2007 and 2013 under the cover of management fees, according to the report. The U.S. Dept. of Justice claims that those fees were not owed to Burrill.
The noteworthy investor was also charged with failing to pay $4.7 million in taxes on the allegedly stolen money, according to Xconomy.
Burrill reportedly pleaded guilty to a single count of investment-advisor fraud and one count of tax evasion last December, and faced the maximum penalty of five years in prison for each count. Despite the charges, 74-year-old Burrill was only sentenced to 30-months in prison and a $200 fine in a sealed plea agreement.
In early 2016, Burrill was barred from the securities industry and ordered to pay nearly $6 million to settle SEC charges that he looted investment funds to cover losses in other businesses and pay for his lavish lifestyle.