Call Now For a Free Consultation:
(614) 502-6165

Ohio Ponzi-Schemer Glen Galemmo Says 'Fear of Failure' Led Him to Steal From His Investors

By Chad M. Kohler, Esq.

Prosecutors have asked U.S. District Court Judge Herman J. Weber to sentence admitted Ponzi-schemer Glen Galemmo to over 15 years in prison in connection with his longstanding Ponzi scheme that reportedly bilked more than 200 investors out of approximately $300 million.

Galemmo, formerly of Cincinnati, pleaded guilty in January to one count of wire fraud and one count of money laundering.

In recently filed court documents seeking a 188-month prison sentence, prosecutors say that "Galemmo essentially used the investor accounts as his personal bank." Among other things, Galemmo used investor money to pay $11,000 for a vacation to Italy; $16,000 to a custom clothing designer; $52,000 in country club fees; and over $100,000 to J. Crew. He also used investor funds to make mortgage payments on his East Walnut Hills residence and to pay for a condominium on Marco Island, Florida.

In response, Galemmo, through his attorney, asks Judge Weber to impose a lighter sentence of 6 years or less and places the blame on his fear of failure, which he says motivated him to cover up the collapse of his investment fund and defraud investors:

Glen Galemmo is a man who felt like he was not allowed to fail. Throughout his life from his childhood living with his father, an Air Force Colonel, to his college years as an athlete, to his adult life as the primary means of financial support for his wife and five children – much was expected from Mr. Galemmo, and failure was not an option. It was his belief that he was not allowed to fail that motivated Mr. Galemmo to conceal the failure of his hedge fund (a once legitimate enterprise), and to continue on as though nothing was wrong, all the while believing he could 'fix it' and recover the money he had lost. If he were able to fix it, then nobody would know that he failed.

Trying to downplay his bad intent, Galemmo argues that he "was not motivated by greed" but rather "a belief that he was not allowed to fail." Galemmo also characterizes the prosecution of his case as a "runaway train" and a "persecution."

Absent from Galemmo's sentencing memorandum is any statement that he is sorry for what he did to investors.

Galemmo is set to appear before Judge Weber in person later this week.

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

Share This Story
If you found the information provided by this article useful, consider sharing to your social media channels to help others in their search for reliable resources.
Consult with Our Legal Team
There is never a cost associated with a consultation

Columbus Office

614-224-6000
305 W. Nationwide Blvd
Columbus, OH 43215
Meyer Wilson
New Orleans Office

900 Camp Street 
Suite 337
New Orleans, LA 70130
Los Angeles Office

310-905-8688
2029 Century Park East,
Suite 400N
Los Angeles, CA 90067
Cleveland Office

216-600-1355
6140 Parkland Blvd.,
Suite 330
Mayfield Heights, OH 44124
Bloomfield Hills Office

248-817-8214
41000 Woodward Ave.,
Suite 350
Bloomfield Hills, MI 48304
Quick Links
Follow Us
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. Read More
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
Read More
chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram