Filed under: Scandals and Lawsuits, Ripoffs & Scams, Investing
CINCINNATI — A southwest Ohio money manager accused of bilking 141 investors in a Ponzi scheme has been sentenced to 15 years in prison and ordered to pay $34.5 million in restitution.
U.S. District Judge Herman Weber said he wanted to send a “loud, emphatic message” to fraudsters with the sentence of Glen Galemmo on Thursday. The Cincinnati Enquirer reports that Galemmo sat silently with his five children and wife watching. He and his attorney had urged a sentence of six years.
Prosecutors said he used new investors’ money to pay earlier investors, and fabricated glowing monthly reports about his Queen City Investments. He pleaded guilty in January to wire fraud and money laundering counts.
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For the first time Thursday, he apologized to investors.
“A day does not go by when I don’t think about the investors, family members and others who have been directly affected by my conduct,” Galemmo said. “I know that all this pain and suffering has been caused solely by me.”
He still faces multiple civil lawsuits seeking to regain investors’ money. Bank accounts totaling $1.5 million were seized, along with five vehicles and property. Weber said Galemmo will be expected to continue paying back investors after his release.
Investor Gary Frey said he thought the sentence was fair, but not satisfactory.
“It’s still only 31 days per investor,” said Frey, of New Trenton, Indiana. He said he and his wife lost some $200,000 from their savings from some 80 years of work between them.
“In his speech, he said he was sorry six times, but I think he was just sorry that he got caught,” Frey said.
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Source: Investing
