Call Now For a Free Consultation:
(614) 532-4576
Nationwide Representation

Richmond Man Gets 8 Years for Ponzi Scheme

Earlier this week, Julius Everett Johnson was sentenced to eight years and one month in prison for the operation of a "complex" Ponzi scheme that defrauded more than 150 investors in Virginia and North Carolina out of approximately $9 million.

This was "not a run-of-the mill fraud," according to prosecutors.

In fact, according to authorities, Johnson's Ponzi scheme was a so large and complex that he needed to keep "detailed records to track into which of the multiple business and bank accounts he had stashed each investor's money," ("Ponzi scheme operator sentenced to 8 years," Richmond Times-Dispatch, July 19, 2011).

Like most investment schemes, many of Johnson's victims were elderly investors who lost their life savings in the scheme, and at least three of the victims were in their late eighties/early nineties.

According to court documents, Johnson solicited investments with promises that funds would be invested in certain specific companies and would reap returns of 6 to 10 percent over a period of one to four years. Instead of investing the funds as promised, Johnson used most of the money to repay earlier investors. (For more information about the case, click here.)

Johnson pled guilty to fraud and other charges in April. The companies involved in the scheme were owned by Johnson and included: Virginia Group Benefits, Mid-Atlantic Insurance, Benefit Contractors Administrators, Inc., River City Cleaners, Roberts Awning LLC and Norvell Awning, LLC.

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
Atlanta Office

945 East Paces Ferry Road, Suite 2275
Atlanta, GA 30326
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
4781 Richmond Rd.
Suite 400
Warrensville Heights, OH 44128
Bloomfield Hills Office

248-817-8214
41000 Woodward Ave.,
Suite 350
Bloomfield Hills, MI 48304
Quick Links
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