Lorn Leitman, of Key Biscayne, was convicted of mail fraud in a plea deal
for an alleged ten year
Ponzi scheme involving residential mortgage loans and loans for military personnel.
John Gentile, who bunked with Leitman in the Army Reserves and godfather
to Leitman's daughter, was one of the victims in the scheme.
Describing Leitman as "the brother I never had," Gentile recommended
Leitman's investments to his own family, including his mother and
mother-in-law. Leitman allegedly sold the investments to Gentile and others
and used some of the money to pay previous investors in the
Ponzi scheme. Leitman also apparently failed to disclose his trouble in the past, including
the fact that he had already lost his licenses as a broker and registered
investment advisor. Leitman claims he did not intend to for the investment
deals to be an investment scam, but that business turned bad in 2007 and
led him into trouble.
Leitman has been sentenced to 17 ½ years in prison and is ordered
to pay $3.3 million in restitution to his victims. US District Judge Donald
Graham stated that he ordered a more severe sentence because Leitman preyed
on people so close to him. Investors are unlikely to see much of their
money, though. Leitman was unable to even pay his own bail after his arrest
investment fraud attorneys with Meyer Wilson have successfully recovered losses for investment scam
victims nationwide. Give us a call today at (888) 390-6491 with any questions
you may have about
stockbroker mediation, arbitration, or litigation.