Pennsylvania Man Pleads Guilty To $18M Ponzi Scheme
Robert Stinson, Jr. from Pennsylvania has pled guilty to running a $17.6 million Ponzi scheme, according to Investment News. According to the article, Stinson defrauded some 260 or so investors involving real estate hedge funds where he promised 10% to 16% returns. The charges pending are for wire fraud, mail fraud, money laundering and bank fraud.
Apparently, Mr. Stinson promised investors that they would get 10% to 16% returns from the real estate hedge funds he was peddling. His curriculum vitae indicated he had degrees from Pennsylvania State University and MIT, in addition to having an extensive background in the investment industry. All of that was false and he had been the subject of several fraud convictions.
As is nearly always the case in these kinds of situations, Mr. Stinson lived well off of the money taken from investors to invest. He bought homes, cars and vacations, in addition to paying himself and family members handsomely. For his deeds he could get 329 years in prison and a fine of $6.8 million. According to the prosecution, the federal guidelines would set the sentence between 324 and 405 months in the joint.