Encinitas man pleads guilty in $5M Ponzi scheme - CBS News 8 - San Diego, CA News Station - KFMB Channel 8

Encinitas man pleads guilty in $5M Ponzi scheme

Posted: Updated:

SAN DIEGO (AP) - A Southern California man has pleaded guilty to running a $5 million Ponzi scheme that carries up to a 20-year prison sentence.

John Clement of Encinitas pleaded guilty Thursday to one count of wire fraud and was set to be sentenced Dec. 20.

The 65-year-old is accused of falsely promising 1½ to 2 percent returns every month for his hedge fund investors with little or no risk.

The North County Times reported Friday that Clement was using money he received from new investors to pay off older ones. At least 22 people fell for the scam.

In May, a judge froze Clement's assets after federal investigators found evidence his Ponzi scheme was collapsing.

___

Information from: North County Times

 

Copyright 2011 The Associated Press.

Powered by Frankly
All content © Copyright 2000 - 2017 Midwest Television, Inc. All Rights Reserved.
For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices.