According to court filings and facts presented at the plea hearing, the defendant and his coconspirators issued promissory notes to investors and promised to use the proceeds to finance shipments of Permapave paving stones from Australia to the United States. In reality, the defendant, together with his coconspirators, operated a Ponzi scheme whereby some investors were paid returns on their investment from the funds the defendant obtained from other defrauded investors. From approximately August 2006 to December 2010, the defendant defrauded investors out of approximately $30 million through this scheme. The defendant and his coconspirators converted millions of dollars of investor funds for personal expenditures, including vacations, watches, jewelry, and automobiles.
“The defendant used the promise of sound securities investments to steal investor funds. He pretended to be a legitimate businessmen but he was no more than a common thief. Through his actions, the defendant caused the financial ruin of many, all the while enriching himself. This office will vigorously investigate and prosecute those who lie to, cheat, and steal from the investing public,” stated Unites States Attorney Lynch. Ms. Lynch extended her grateful appreciation to the Federal Bureau of Investigation, the agency responsible for leading the government’s investigation.