A man who pleaded guilty in May to defrauding investors was sentenced Wednesday to three years and three months in federal prison.
As part of his plea agreement, Michael Betts must also make restitution of $150,925.
U.S. District Judge Karen Caldwell denied a defense motion to have Betts sentenced to four years of probation.
Betts is the former organizer and managing partner of a hormone-replacement clinic in Lexington that dissolved in 2013. The clinic specialized in weight-loss treatment, hormone replacement therapy and vitamin supplements for men and women.
Betts acknowledged that he defrauded investors by offering limited-partnership interests, according to the plea agreement. In return, investors would receive the full amount of their investment after two years.
He also began offering a “micro-investment opportunity” in which investors would essentially lend money to the clinic.
None of the investors received any of their money back, the plea agreement said. The agreement also said Betts failed to disclose that the money would be used by him “for things other than furthering the business.”
Betts must report to a designated prison on Oct. 18.