Andrew Bogdanoff, the founder of Remington Financial Group, was sentenced to 18 years in prison for defrauding 1,900 investors out of more than $26 million, federal prosecutors in Philadelphia said.
U.S. District Judge William Yohn Jr. sentenced Bogdanoff, 67, of Scottsdale, Arizona, to 220 months in prison and ordered him to pay full restitution to the victims, U.S. Attorney Zane Memeger’s office said today in a statement. Bogdanoff pleaded guilty in August to mail and wire fraud, money laundering, conspiracy to commit fraud and filing false tax returns.
Bogdanoff and five other people were charged in April 2012 with persuading investors to pay fees of more than $10,000 each to Remington by issuing fake letters of interest stating the investment bank had a lender or vendor seeking to finance a project, prosecutors said.
Bogdanoff was the founder and chairman of Remington Financial Group, later renamed Remington Capital. He ran the company with co-defendant Matthew McManus until 2008 in Arizona and Pennsylvania. The scheme took place from 2005 to 2011, prosecutors said.
McManus was convicted at an earlier trial and is to be sentenced in May. A plea hearing for another defendant is scheduled for April 15. The remaining three have pleaded guilty and will be sentenced in April and May, according to the statement.
The case is U.S. v. Bogdanoff, U.S. District Court, Eastern District of Pennsylvania (Philadelphia).