TAG | Blimline sentenced in Ponzi
Comments off · Posted by Securities Lawyer in FINRA
Joseph Blimline was sentenced to 240 months in federal prison on each of the charges related to the Ponzi schemes on May 3, 2012, before U.S. District Judge Marcia A. Crone,who ordered the sentences to run concurrently and that restitution be made to the victims of the schemes.
At the sentencing hearing, the government presented testimony and evidence which established that Blimline and others began operating a Ponzi scheme in Michigan between November 2003 and December 2005. Blimline ordered that later investor payments be used to pay previous investors and diverted investor payments for his own personal benefit–thus creating a ‘Ponzi Scheme.’ The Michigan scheme netted over $28 million before its collapse.
According to the FBI website article, Blimline exported the Michigan Ponzi scheme to Texas, in 2006, where he and his new co-conspirators began the operation of Provident Royalties in Dallas. Blimline made false representations and failed to disclose material facts to their investors in order to persuade the investors into providing payments to Provident. Blimline received millions of dollars in unsecured loans from investor funds and also directed the purchase by Provident of worthless assets from his Michigan enterprise. In the Provident scheme, funds from later investors were also consistently used to make payments to early investors, resulting in the collapse of the scheme in 2009. The Provident scheme netted over $400 million from approximately 7,700 investor victims.
“The Michigan agents worked hand in hand with the agents in Texas and with federal and state securities regulators to untangle both of these complicated Ponzi schemes and bring the perpetrators to justice for their abuse of the trust of others to obtain criminal profits,” said U.S. Attorney Bales. “To all potential investors, I urge you to be wary of investment vehicles that promise exorbitant rates of return. Remember: If the opportunity appears too good to be true, then it probably is.”
U.S. Attorney for the Western District of Michigan Donald A. Davis praised the diligent work and cooperation of all involved and said, “Stealing money through fraud and deceit will not be tolerated.”
FBI Detroit Division Special Agent in Charge Andrew G. Arena said, “This sentencing comes as a result of the hard work performed by agents committed to stopping this type of fraud. Those who choose to steal money through the operation of these schemes will be arrested and brought to justice.”
Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, has represented clients nationwide. If you or a family member have sustained investment losses due to your stock broker or financial advisor’s recommendations, call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: www.securitieslawyer.com.
Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.
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