The founder and principal manager of a bogus foreign exchange fund that effectively operated like a Ponzi scheme has been sentenced to nearly six years in prison on tax charges.

John S. Lipton, formerly of Mission Viejo and Laguna Hills, Calif., was sentenced by U.S. District Judge Dale S. Fischer in Los Angeles to 70 months in prison. The court also ordered Lipton to pay restitution of $2,915,427.16 to the IRS.

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