On July 19, 2015, we posted a blog discussing the case involving former broker John Steven Blount. At the time, Blount pleaded guilty to one count of wire fraud. The charge stemmed from his involvement in a Ponzi scheme in which investors suffered losses to the amount of $5.8 million.
U.S. District Judge Patricia Minaldi has issued the sentence on the one count of wire fraud and Blount will spend 235 months in prison. He will also have to pay $4.3 million in restitution and serve three years of supervised release upon the end of his prison sentence.
According to the court documents at the time of the guilty plea, Blount recommended his clients to invest in fake companies, bonds, and IRAs with a promise of a high return. Instead, Blount was accused of using the money for his own personal expenses and transferring the amounts into his bank accounts, using fake statements provided to his clients to continue with the scheme. Many of his victims were retirees who used their savings to invest. The accusations against Blount also stated that he wrongfully used his website, personal relationships, and his position of trust to defraud clients.
Despite being barred from the securities industry in 2003, Blount allegedly continued to operate as an investment adviser. He used his own company, Professional Consultants LLC, to run the Ponzi scheme from June 2007 to December 2014. At least 73 investors were victimized by the scheme.
If you were one of the victims who lost money in the Ponzi scheme perpetuated by John Steven Blount, contact our securities fraud lawyers at Meyer Wilson. We have a reputation of helping our clients seek to recover losses after securities or investment fraud. Schedule your free consultation and discuss your case with us. We can determine if you have a case and analyze the specific details in order to help you file a claim.