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Byline: Dean Calbreath
Jul. 23--A father-and-son sales team yesterday was ordered to pay up to $20 million in restitution and penalties for peddling "death benefit" investments in a San Diego fraud scheme targeting senior citizens.
Robert N. Shearburn and his son Robert L. Shearburn were fined for their role in a fraud scheme pioneered by San Diego resident Carmen L. Palmieri.
At the conclusion of a separate criminal case in January, Palmieri was sentenced to 30 years in prison after pleading guilty to defrauding 191 investors.
Susie Wong, spokeswoman for the California Department of Corporations, said Palmieri was told to pay $14.5 million in restitution to the victims and $5 million in penalties, and yesterday the senior Shearburn was held liable for the same restitution and $4.9 million in penalties.
The younger Shearburn was ordered to pay $75,000 in restitution and $37,500 in penalties.
"These are not two separate judgments," Wong said. "It's the same pool of money for the same group of people, so if Mr. Palmieri is able to pay the restitution, the Shearburns will not have to."