Couple Sentenced in Pyramid Scheme

A North Hills couple was sentenced Monday after pleading no contest to operating an illegal pyramid scheme, Los Angeles City Atty. James K. Hahn announced.

Rafael Lopez, 40, was ordered to spend 30 days in jail or 20 days on a Caltrans work crew and was also placed on three years’ probation by Los Angeles Municipal Commissioner Kristi Lousteau. Lopez was ordered to pay a total of $1,500 in restitution to three victims. Lopez’s wife, Sandra, 46, was sentenced to 200 hours of community service and three years’ probation after she pleaded no contest to the same charge of operating an endless chain scheme.

The charges grew out of an investigation by vice detectives at the Los Angeles Police Department’s Devonshire Division after three “investors” said they never received the $4,000 promised them by the Lopezes, Deputy City Atty. Keith De La Rosa said. Authorities said the victims paid $500 each to participate in the scheme, called Amigos Ayudando Amigos (Friends Helping Friends), during meetings at the couple’s home. Despite assurances that their investments would be returned upon request, the Lopezes refused to refund the money, De La Rosa said.