A former Philadelphia broker has been sentenced to 10.5 years in prison for fraudulently selling certificates of deposit, the Securities and Exchange Commission announced Friday.

Malcolm Segal of Langhorne, Pa., and Boynton Beach, Fla., who pled guilty to wire fraud and mail fraud in February, was sentenced Thursday in U.S. District Court in Philadelphia and also ordered to pay victims $3 million in restitution.

The SEC also had filed a civil complaint for fraud against Segal and barred him from the financial industry. The scheme fell apart in 2014.

Segal fraudulently sold certificates of deposit to his brokerage retail customers, falsely claiming that he could provide higher interest rates on FDIC-insured CDs than otherwise available to the general public, the SEC says.

In some instances, Segal purchased CDs on behalf of investors but secretly redeemed them early and took the proceeds. Other times, the complaint says, Segal did not purchase CDs at all, despite telling customers he had, and then misappropriated the customers' money.

Besides spending investor money on himself for a condominium in Florida and to pay for vacations, he also used the money in a Ponzi scheme to make purported interest payments and principal repayments to early investors, the complaint says.

Eventually, the complaint says, Segal stole directly from his customers' brokerage accounts in a last-ditch effort to keep funding the Ponzi payments and keep his scheme from being detected.