According to an article on the Cincy Biz Blog from the Business Courier, a co-conspirator from Brookville, Indiana, has now also been sentenced in the Jasen Snelling Ponzi scheme case. After pleading guilty in June 2012, 50-year-old Jerry Smith has been ordered to spend 65 months in prison and pay $5,400 to investors who lost money in the scam. Snelling was previously sentenced to 131 months in prison and $5,300 in restitution at a hearing in October of 2012.
According to information released about the alleged $8.9 million Ponzi scheme, both Snelling and Smith lured investors in through their fictitious day-trading companies Dunhill and CityFund. According to US Attorney Carter Stewart, “Consistent with a classic Ponzi scheme, early investors were paid interest or return of capital payments, which were not generated by investment earnings, but rather by monies solicited from later investors. These payments served to lull the victims into a false sense of security and to prevent or delay the discovery of the fraudulent investment scheme.”
In addition to admitting his role in the Ponzi scheme, Smith also allegedly admitted that he attempted to obstruct the Ponzi scheme investigation by giving agents fake documents. Smith was also ordered to pay $72,000 to the IRS for tax evasion related to the handling of investors’ cash in the Ponzi scheme.
If you have lost money in this Ponzi scheme or another investment scam, don’t hesitate to reach out for help. An experienced securities fraud lawyer with Meyer Wilson would be happy to address your questions and concerns today.