Federal prosecutors have filed criminal charges against the owner of Life’s
Good Inc. for his alleged participation in a
Ponzi scheme involving nearly $17 million. The charges were filed against Robert Stinson
Jr. on Friday, November 5, 2010.
According to the federal government, the owner of the Philadelphia-based
company, Life’s Good, defrauded 260 investors out of $17 million
in a Ponzi scheme, which came to a halt in June by the U.S. Securities
and Exchange Commission (SEC).
Mr. Stinson allegedly promised investors an annual rate of return of 10
to 16 percent through real estate investments. However, it appears as
though he used the money to enrich himself, family members and to pay
earlier investors, according to prosecutors.
Reports also alleged that Mr. Stinson obstructed justice on June 29 when
he wired $225,000 from Life’s Good bank accounts to several other
accounts of his, while federal agents searched his offices.
The indictment indicates that Mr. Stinson paid commissions to investment
advisors who steered money his way in the range of 5 to 10 percent. An
unnamed Colorado financial advisor supposedly received a wire transfer
of $31,500 in commissions from Mr. Stinson.
“It’s just horrible what he’s done to people,”
said Nevada investor Jan Rudy.
Mr. Stinson faces five counts of wire fraud, four counts of mail fraud
and nine counts of money laundering. If convicted on all counts, he could
serve up to 329 years in prison.