Updated 10:03 a.m. May 7

The owner of the Blue Line Brewery will not incur any prison time for defrauding investors out of nearly $400,000, according to U.S. Attorney Grant C. Jaquith's office.

Mark Gillis, 48, of Saranac Lake was sentenced Thursday to time served, to be followed by one year of home detention, for defrauding customers of his brokerage firm out of nearly $400,000.

Blueline Brewery officials say they are not going out of business as a result of this case.

The Adirondack Daily Enterprise reported that time served amounts to less than one day in jail.

In 2012, Gillis was a co-owner of Hudson Valley Capital Management, Inc., a securities broker-dealer with offices in Saranac Lake and Croton-on-Hudson,. Gillis was a licensed stockbroker and worked out of Saranac Lake, Jaquith said.

Gillis admitted to purchasing shares of a stock and then transferring the shares to three Hudson Valley customers at improper markups of up to 280 percent. As a result of the markups, Gillis stole $379,652.41 from the customers. Gillis did this to cover up a nearly $400,000 loss he suffered while trading securities for his own benefit, according to Jaquith.

Senior United States District Judge Norman A. Mordue also ordered Gillis to pay $226,500 in restitution to the Securities Investor Protection Corporation, the U.S. Attorney said.

This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.