A Pearland man, Clinton Finch Herzog, 49, has been sentenced to 36 months in federal prison and ordered to pay over $2 million in restitution after being convicted of wire fraud. The sentencing took place in federal court in Austin.
Court documents revealed that between 2016 and 2018, Herzog defrauded investors in his dental practices, involving the misappropriation of hundreds of thousands of dollars. Investors had agreed to make capital investments in limited liability companies established by Herzog to oversee dental practices. Contrary to his promises, Herzog commingled investor funds with his personal assets and diverted investors' money for personal use. This included expenses for extravagant meals, airline tickets, travel, liquor, and jewelry.
The court not only sentenced Herzog to 36 months in prison but also imposed a three-year supervised release term. Additionally, he was ordered to pay $2,182,760.63 in restitution.
The investigation into this case was conducted by the Federal Bureau of Investigation (FBI).