SANTA ANA – A Newport Beach man who admitted to scamming investors out of millions by convincing them to bankroll nonexistent In-N-Out franchises in the Middle East was sentenced Monday to prison.

United States District Judge Andrew J. Guilford during a sentencing at the federal courthouse in Santa Ana ordered Craig Stevens to serve two years behind bars, after Stevens pleaded guilty to wire fraud for soliciting more than $4.27 million from defrauded investors.

Stevens, 56, claimed to have exclusive rights to establish In-N-Out franchises in the Middle East. He told investors that they could purchase a franchise for about $150,000 per location, as long as they paid an additional $250,000 a year in royalties.

In reality, In-N-Out is privately held and has no franchisees in the five states where it has eateries. Stevens does not have any actual business partnerships or agreements with the Irvine-based fast food company.

Stevens was indicted following an FBI investigation. As part of his plea deal, Stevens admitted to emailing someone in Lebanon to discuss the fraudulent licensing agreement, according to a United States Attorney’s office statement.

It isn’t clear how many people provided Stevens with money, although court filings pointed to fewer than 10 investors.

Contact the writer: semery@ocregister.com