A Pennsylvania man who admitted his role in a $17.6 million Ponzi scheme that defrauded 260 investors was sentenced to more than 33 years in prison by a federal judge.
Robert Stinson Jr., 56, of Berwyn, pleaded guilty last year to 26 charges, including wire and mail fraud, money laundering and bank fraud, according to U.S. Justice Department officials.
“Stinson ran a company called Life’s Good Inc., that solicited investments in one of four real estate hedge funds,” promising returns of as much as 16 percent, according to a statement from the U.S. Attorney’s office in Philadelphia.
U.S. District Judge Michael Baylson yesterday also ordered Stinson to pay $14 million in restitution.
Officials said Stinson used some of the proceeds to buy two Mercedes-Benz sedans, and falsely told investors he was a graduate of Massachusetts Institute of Technology.
The case is U.S. v. Stinson, 10-cr-00724; a related lawsuit is Securities and Exchange Commission v. Stinson, 2:10- cv-3130, both in U.S. District Court, Eastern District of Pennsylvania (Philadelphia).
To contact the reporter on this story: Phil Milford in Wilmington, Delaware, at email@example.com
To contact the editor responsible for this story: Michael Hytha at firstname.lastname@example.org.