A Bend man who bilked about 300 real estate investors out of more than $18 million was sentenced Tuesday to nearly 20 years in prison in a Eugene federal court.

Michael Rich, 71, the former president and CEO of Bend-based Pac Equities Inc., will repay more than $10 million in restitution to the victims, said Dan Wardlaw, special agent and spokesman with the IRS. His wife, Phyllis Rich, also has been convicted in the real estate scam and has been ordered to pay back part of the stolen money as well.

Assistant U.S. Attorney Sean Hoar asked U.S. District Court Judge Michael Hogan to send Rich away for 30 years because Rich is likely to defraud more people after he gets out.

Hoar, who prosecuted the case, said Rich continued to show his true colors even while he was locked up and awaiting sentencing on the fraud case. Hoar said Rich tried to use outsiders to sell property he didn’t own while he was in custody.

“My biggest concern is that if Mr. Rich was ever released into the community again, he would commit more fraud,” Hoar said in a phone interview. “Until his last breath, he will be attempting to commit more fraud.”

In December, a federal jury found Rich guilty of bank, mail, tax, wire and securities fraud, obstruction of justice, attempted bank fraud and money laundering. The jury also found Pac Equities Inc. guilty of the scheme that took millions of dollars from investors and promised a 10 percent annual return on their investment.

The securities fraud charges stemmed from real estate investment contracts based on misrepresentations made by Rich and Pac Equities.

Rich also fraudulently obtained a $149,905 loan from Countrywide Bank National Association, $20,000 in cashier’s checks from the Bank of Hawaii, a $600,000 loan from Countrywide Home Loans and additional money from investors, according to a news release from the U.S. Department of Justice.

Rich used investor money to pay his personal expenses, giving rise to the money laundering charges, the release said. He was charged with obstruction of justice for hiding information from investigators and the court about his financial activities.

Rich was charged with tax fraud for failing to report $139,500 to the IRS in 2003 and an additional $155,000 in 2004.

“This guy will go to whatever ends to commit fraud,” Hoar said. “Mr. Rich still denies responsibility.”

The Rich case stems from an investigation by the FBI, IRS and the state’s Department of Consumer and Business Services. Michael Rich and his wife were arrested in May 2006 after officials found forged Canadian citizenship documents and $51,400 in cash and traveler’s checks in their possession.

Phyllis Rich pleaded guilty in 2006 to conspiracy to commit securities fraud and filing a false tax return and agreed to testify against her husband. She was sentenced to more than four years in prison and ordered to pay about $13.4 million in restitution.

Over the course of the Riches’ ownership, Pac Equities, which had its office at 250 N.W. Franklin Ave., in Bend, claimed to manage profitable real estate development projects including a Culver dairy, commercial buildings in Redmond, a subdivision in Arizona and an industrial park in La Pine, according to the Justice Department’s news release.

Authorities seized about $10 million in assets during the investigation, which will be used to repay investors, Hoar said. Investors could get 50 cents to the dollar for money they invested with Pac Equities.

“Investment fraud like this is getting to be more and more common, and we’re getting to see a lot of it in Oregon,” said Special Agent Wardlaw. “Relative to how much was involved, this sentence is very just.”

Timeline of the Rich fraud scheme

May 2006: Michael and Phyllis Rich arrested

September 2006: Phyllis Rich pleads guilty to conspiracy to commit securities fraud and filing a false tax return

December 2007: A federal jury convicts Michael Rich of 25 counts relating to a securities fraud scheme

April 2008: Michael Rich sentenced to about 20 years in prison