The U.S. Attorney for the Western District of Louisiana announced recently
that John Steven Blount of Lake Charles, Louisiana, pleaded guilty to
one count of wire fraud for his involvement in a Ponzi scheme that caused
$5.8 million in investor losses.
FINRA barred Blount from the securities industry back in December 2003,
but despite this, he allegedly continued to work as an investment advisor.
Between June 2007 and December 2014, Blount allegedly operated a Ponzi
scheme that he ran through his company, Professional Consultants LLC.
The scheme involved at least 73 investors.
According to court documents, Blount solicited investments in fake companies
as well as bonds and other IRAs, promising that they would yield high
returns. Rather than using the money as promised, Blount was accused of
transferring his customers’ money directly into his own bank accounts.
To perpetuate his scheme, court documents report that Blount gave his customers
fake account statements via email, and issued “returns” to
investors that were actually payments made by other investors. His victims
were primarily retirees who invested their retirement savings. Blount
allegedly used his position of trust within the community, his website,
and personal relationships to build his scheme.
Blount awaits sentencing on October 22. He faces possible prison time,
supervised release, a large fine, and restitution.
Meyer Wilson helps victims of Ponzi schemes recover their losses, so if
you or someone you know has suffered substantial investment losses, contact
one of our investment fraud lawyers to see how we could help. We provide
free case evaluations.