A well orchestrated ponzi scheme in the United States of America, based on promised returns of about 10% to 20% over periods of time as short as several weeks from cattle and marijuana, raised a stunning US$650 million from investors.
The two people behind the scheme, Reva Joyce Stachniw and Ron Throgmartin were on Friday sentence to six years in prison. The Colorado federal judge in Colorado also ordered the defendants to pay more than US@35 million in combined restitution and forfeitures, according to the Department of Justice.
Also read; 7 days to presidential election, how to cast a valid vote
The scheme which was operated from late 2017 through early 2019 was ran by 71 years old Stachniw, resident of Galensburg Illinois, and 59-year-old Throgmartin, resident of Buford Georgia, along with their co-conspirator, Mark Ray of Denver Colorado.
While Ray pleaded guilty in February 2020 in Illinois federal court to wire fraud and bank fraud in connection with the scheme, Stachniw and Throgmartin were convicted at trial in August 2022 of wire fraud and conspiracy to commit both wire fraud and money laundering in the scam.
The trio promised returns of about 10% to 20% over periods of time as short as several weeks, solicited money from investors around the United States by offering them one of three different purported investment opportunities, the court fillings said.
“Most often, the conspirators fraudulently represented to victim-investors that their investments were backed by short-term investments in cattle,” the DOJ said in a May 2021 press release when the charges were first announced.
“They also used false and fraudulent pretenses to solicit money from victim-investors for the conspirators’ Colorado-based marijuana business, Universal Herbs LLC,” the DOJ said.
Other victims gave the conspirators money based on false promises that it would be used for business activity related to cattle or marijuana, “without having the investment money linked to specific investment opportunities,” DOJ said.
What the schemers did was to pay profits to investors from money placed in the Ponzi scheme by other unwitting investors, the authorities said.
CNBC reported that in an email to it, Throgmartin’s lawyer Steve Sadow wrote, “Although no one wants to receive a sentence of imprisonment, Mr. Throgmartin appreciates the Court’s fairness in imposing a 72-month sentence instead of the government’s recommendation of a 108-month sentence.”
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
