Lorn Leitman, of Key Biscayne, was convicted of mail fraud in a plea deal for an alleged ten year Ponzi scheme involving residential mortgage loans and loans for military personnel. John Gentile, who bunked with Leitman in the Army Reserves and godfather to Leitman's daughter, was one of the victims in the scheme.
Describing Leitman as "the brother I never had," Gentile recommended Leitman's investments to his own family, including his mother and mother-in-law. Leitman allegedly sold the investments to Gentile and others and used some of the money to pay previous investors in the Ponzi scheme. Leitman also apparently failed to disclose his trouble in the past, including the fact that he had already lost his licenses as a broker and registered investment advisor. Leitman claims he did not intend to for the investment deals to be an investment scam, but that business turned bad in 2007 and led him into trouble.
Leitman has been sentenced to 17 ½ years in prison and is ordered to pay $3.3 million in restitution to his victims. US District Judge Donald Graham stated that he ordered a more severe sentence because Leitman preyed on people so close to him. Investors are unlikely to see much of their money, though. Leitman was unable to even pay his own bail after his arrest last year.
The investment fraud attorneys with Meyer Wilson have successfully recovered losses for investment scam victims nationwide. Give us a call today at (614) 532-4576 with any questions you may have about stockbroker mediation, arbitration, or litigation.