Two Sentenced in Alleged Ponzi Scheme after Guilty Pleas
John E. Walsh, of Lake Forest, received a sentence of 12 1/2 years in prison
in relation to an alleged
Ponzi scheme that started in 2007. Charles G. Martin, an additional associate in the
alleged investment scam, was sentenced to 17 years in prison the following
day. The two men created One World Capital Group, LLC together, and both
men pleaded guilty in the scheme.
According to court documents, Martin and Walsh were accused of luring in at least 1000 investors total and took in around $17 million. The men were accused of misrepresenting the investments being offered and failing to give new clients information about the actual value of the investments they were selling. Reportedly, the men ultimately used investors' cash to fund luxury lifestyles, and officials report seizing luxury items from the residences of both men, including expensive electronics, jewelry, art, and oriental rugs.
Beyond the expensive items the men are accused of buying with misappropriated cash, the two men are also accused of using investors' money to fund the making of a film, which apparently accounted for about $500,000 of the money taken in.
Both men will pay restitution in addition to serving the prison sentences, and a forfeiture judgment for $10 million is expected for both men.
The securities fraud lawyers with Meyer Wilson represent investors nationwide in stockbroker mediation, arbitration, and litigation. If you have sustained losses and suspect you have been the victim of stockbroker misconduct or an investment scam, don't hesitate to contact one of our experts today.