Federal Conviction Upheld of Calif. Man with History of Sunken Yachts

A California lawyer who attempted to sink his $1.9 million yacht will continue to serve jail time after a federal appeals court upheld his conviction, according to the Associated Press.

Rex DeGeorge was convicted in March 2002 in Los Angeles for seeking to receive insurance payments nearly double the price of his yacht. The appeals court upheld his convictions on conspiracy, mail and wire fraud and perjury, but the appeals court threw out one count of enhancement of obstruction of justice.

DeGeorge and two men reportedly left Italy on the lawyer’s yacht, a custom-built Principe di Pictor, in November 1992. The three men reportedly cut holes in the bottom of the boat to sink it and were later captured by Italian authorities. When the men returned to the United States they filed a claim with their insurance company, Cigna.

The men claimed that a hired captain had tried to sink the boat, but witnesses testified that the men left Italy without a captain.

DeGeorge previously claimed that two of his other boats sank and one was stolen, and received insurance payments as a result. Cigna refused to pay the claim on the Principe di Pictor. DeGeorge is currently serving a 90-month jail term.