*Ezri Namvar sentenced to 7 years

"I think he lost his moral compass, the simple ability to tell right from wrong," Federal Judge Percy Anderson told a packed courtroom this morning. Earlier this year the L.A. real estate investor was convicted on wire fraud charges stemming from allegations that he stole $21 million from clients. In addition to jail time, which he begins serving on Nov. 8, Namvar was asked to pay restitution of the $21 million. Prosecutors had asked for a 10-year sentence. Namvar's clients were largely Iranian immigrants who felt comfortable doing business with one of their own. But near the end of 2008, Namvar was forced into bankruptcy, with his clients left holding the bag. Last year, a bankruptcy trustee issued a report that accused Namvar of treating investor money "as his personal family piggy bank."

Reporter Daniel Miller, who was in the courtroom, described the scene for me: "Namvar cried at several points during the proceeding, and read from a leather bound Hebrew text just before the proceeding began. The crowd appeared to be mostly Namvar supporters, some of whom cried once the sentence was read. The court heard speeches from two women who had been defrauded. Namvar declined to speak before sentencing, instead submitting a letter."

*From A. David Youssefyeh, a lawyer that represents more than 20 creditors of Namvar:

"Mr. Namvar's prison term is a big step towards justice for Mr. Namvar's victims. However, my clients hope this is not the end of the FBI's investigation but rather the first of many convictions and prison terms for Mr. Namvar and his co-conspirators."