Chesterton Tribune

 

 

Merrillville man gets five years for Ponzi-type scam

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A Merrillville man has been sentenced to five years in federal prison after being found guilty at trial of wire fraud and structuring transactions to evade reporting requirements, the U.S. Attorney’s Office for the Northern District of Indiana said.

Eugene Wilson Sr., 56, was also sentenced to four years of supervised released, the U.S. Attorney’s Office said.

“Wilson stole approximately $1.5 million from three groups of investors,” the U.S. Attorney’s Office said.

The investigation began when the FBI received a complaint that Wilson had defrauded persons through a Ponzi-type scheme, in which he “convinced individuals to invest money with him by promising a very high rate of return,” the U.S. Attorney’s Office said. “To lure the investor into the scheme, Wilson created a written agreement and promised to keep the funds in an escrow account. In all three events, upon receiving the money, Wilson immediately wire-transferred the funds to third parties, most of whom banked in Europe. Wilson then lied about the whereabouts of the funds and finally ended communications with the investors.”

“In 2008,” the U.S. Attorney’s Office added, “Wilson received a series of wire transfers. He then engaged in a series of bank transactions to avoid the bank reporting that he had received more than $10,000 in cash.”

 

Posted 6/24/2013