Menu Contact
Toll Free: 888-290-8073
Fax: 570-322-8813
Se Habla EspaƱol
  • Facebook
  • Twitter
  • Linked In
  • Google Plus
In This Section

Pennsylvania man pleads guilty in fraud case

One Pennsylvania man pleaded guilty to federal fraud charges, according to the Department of Justice. The 53-year-old man from Lilly was accused of securities fraud, wire fraud and filing false tax returns in a $4.5 million securities scheme that took place between February 2002 and May 2016. The man, a broker and investment advisor, reportedly created an entire scheme in which others believed that they were investing in high-yield securities. However, the contracts behind the scheme were apparently bogus.

Instead, the man reportedly used other clients' investments to provide "returns" to other clients, giving them the impression that they had legitimate investments of some kind. He offered clients three different options to produce significant returns, presenting false documentation with little clear information. The broker purported to offer investments in a car rental company, coal mining companies and an unspecified tax-free investment with a fixed return. Many of the clients were elderly or retired and apparently had little knowledge about investing.

However, the scheme collapsed in 2016 when a later client who did not receive the promised returns filed a fraud complaint with regulators. Investigations revealed that the funds were placed in accounts held under his wife's name and that he paid past investors out of new investors' money, falsifying his tax returns to obscure the source of his income. The guilty plea included an agreement to pay back the money, and the man is scheduled to be sentenced in April 2019.

Not everyone accused of a white collar crime is directing a major financial scheme, however. In many cases, even financial "winners" in a dubious operation run by someone else may face charges and attempts to claw back their funds. A criminal defense attorney might be able to work with defendants to challenge prosecution assertions and present a strong defense before trial and in court.

No Comments

Leave a comment
Comment Information
Email Us For A Response

Contact Us Today

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Location

125 East Third Street
Suite 2
Williamsport, PA 17701

Toll Free: 888-290-8073
Phone: 570-279-4191
Fax: 570-322-8813
Map & Directions

Phone: 570-279-4191
Toll Free: 888-290-8073