Life's Good Inc. Owner Accused of Ponzi Scheme
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.