He was sentenced to 22 years, later extended to 30 because his then-wife did not turn over assets to repay investors.
Once the families got the conventional loans, she would repay investors with interest of up to 18 percent.
That money would be used to repay investors, he said.
If this initiative reduces re-offending by 7.5% or more, the government will repay investors from a share of the cost savings.
Just before the end of the year, the company borrowed $700 million by issuing junk bonds, and used most of the money to repay investors.
And the regulators told the firm to repay investors more than $400,000, and levied a $500,000 fine.
Moreover, fund companies involved in the scandals have agreed to repay investors for any losses that resulted from improper trading.
Several states have attempted to seize some of those funds to repay investors.
Of that sum, $387.5 million will go to repaying investors who file claims with the government.
That, in turn, would allow the United States to borrow more to meet its operating expenses and to repay investors.