Framingham Man Pleads Guilty in Multi-Million Ponzi Scheme
A Framingham man has pleaded guilty for his connection with aPonzi scheme involving nearly $15 million in losses. Richard Elkinson, 77, pleaded
guilty on Wednesday, April 13, 2011, before U.S. District Judge Joseph
L. Tauro in U.S. District Court in Boston for his role in the investment scam.
According to prosecutors, Mr. Elkinson defrauded approximately 100 unsuspecting investors out of nearly $15 million. The Framingham man pleaded guilty to 18 counts of mail fraud for his involvement in the Ponzi scheme that lasted from the early nineties to 2009.
Prosecutors allege that Mr. Elkinson solicited investors for financing to manufacture uniforms to be purchased by government agencies. However, investigators learned that he had no uniform business and no contacts with any government agencies.
Mr. Elkinson supposedly gave out approximately $30 million in promissory notes. Some of the earlier investors were paid back through money raised from subsequent investors. Investors were apparently offered interest rates ranging between nine to fifteen percent. He also allegedly used some of the money for his personal use.
Mr. Elkinson is scheduled for sentencing on July 21, 2011. He faces up to 20 years in prison for his fraudulent activities in the multi-million dollar Ponzi scheme.