Man who managed dental practice in Austin sentenced for wire fraud

AUSTIN, Texas - A man was sentenced to three years in prison after being convicted of wire fraud. 

According to court documents, 49-year-old Clinton Herzog defrauded investors in his dental practices of hundreds of thousands of dollars between 2016-18.

Investors with Herzog agreed to make capital investments in limited liability companies created by Herzog to manage dental practices. Herzog promised, among other things, that the relevant limited liability companies would not commingle investor funds with assets of any other person. 

Herzog routinely violated the limited liability company agreements by commingling investor funds with his own personal funds and by diverting investors’ money for his own personal use, including to pay for expensive meals, airline tickets and travel expenses, liquor, and jewelry.

In addition to the three-year prison sentence, the court also sentenced Herzog to a supervised release term of three years and ordered him to pay $2,182,760.63 in restitution.