On Tuesday, July 20, Donald Anthony Young pled guilty to one count of mail
fraud and one count of money laundering in federal district court, according
to a July 21 Philadelphia Daily News article. As part of his plea, the
39-year-old admitted to cheating investors out of more than $20 million
from 1999 to 2009.
Athorities said Young told clients they were investing in blue-chip, large-cap
companies. In reality, Young diverted more than $23 million to his own
accounts, which he used to purchase luxury homes, cars, boats, antiques,
and fine jewelry, among other items. He also falsified quarterly statements
and liquidated investors' contributions without approval, in order
to payoff other investors, according to the article.
In addition to his criminal charges, Young was sued by the SEC in federal
court. A federal judge appointed a receiver to pay back investors who
were harmed in the scheme. So far, almost $10 million has been repaid.
Young's sentencing is scheduled for October 28.