Bennett, 56, a resident of Chevy Chase, Md., was a regular CNBC guest and also was a past columnist for Financial Advisor. She formerly owned Bennett Financial Group Services in Washington, D.C., and operated DJB Holdings, an online retail store for high-end sportswear.
She was found guilty of the charges in October by a jury that deliberated less than five hours after a nine-day trial.
"Dawn Bennett's greed knew no bounds as she knowingly defrauded elderly retirees of their life's savings," Hur said after the verdict was rendered.
Her accomplice in the scheme, Bradley Mascho, 52, of Frederick, Md., pleaded guilty to conspiracy to commit securities fraud and to making a false statement as part of a deal that requires him to pay restitution of up to $5.7 million, according to the U.S. Attorney's Office. Mascho faces a maximum of 10 years in prison and is scheduled to be sentenced on August 28.
According to the evidence presented at trial, Bennett solicited individuals to invest money in her internet clothing business between December 2014 and April 2017, offering an annual interest rate of 15% through convertible or promissory notes. She underestimated the risks of investing in DJB Holdings, misrepresented how investors' funds would be used and told investors the investments were liquid and guaranteed by DJB Holdings' inventory and assets, prosecutors said.
According to testimony at trial, Bennett also obtained a $750,000 line of credit by making false statements to a bank, including telling the bank she had a brokerage account with a net portfolio value of over $4 million. In reality, Bennett's net portfolio value was only $35.