Former Navy Seal Sentenced for Investment Fraud Scheme: Spent Money Gambling

SAN DIEGO — (Associated Press) - A former U.S. Navy SEAL has been sentenced in San Diego for bilking people out of more than $1 million in an investment fraud scheme.

Jason Mullaney got six years and eight months in state prison Wednesday for fraud, grand theft and other crimes.

Prosecutors contend the 44-year-old Mullaney cheated at least 13 people — many of them former Navy SEALs — by convincing them he was using their investment money to make loans.

Prosecutors say he actually spent it on a lavish lifestyle that included luxury cars and a Las Vegas gambling habit.

Mullaney was homeless when he was arrested in 2012 but he's been ordered to pay victims nearly $1.2 million in restitution.