The operator of a US$24-million investment fraud scam has been sentenced to 30 years in prison and ordered to forfeit the proceeds of the Ponzi scheme.
John Lopez, founder of the investment firm Personal Money Management Co. — who claimed to have developed a proprietary trading algorithm that promised high, guaranteed returns from trading stocks and bonds — was sentenced to 30 years in prison, three years of supervised release and ordered to pay over US$24 million in forfeiture. The court will also issue a restitution order within 90 days.
Last year, Lopez was convicted by a federal jury on 31 charges, including wire fraud, mail fraud and money laundering.
According to court filings, Lopez promised investors high annual returns of between 10% and 42% from his firm’s trading algorithm — but actually used about US$16 million of investors’ money to buy precious metals, which he stored in various locations, including burying some and stashing bullion at his home, office and in a storage facility.
Another US$6.1 million was paid out to investors to create the illusion of returns, and US$3.1 million believed to be in precious metals remains unaccounted for, U.S. authorities noted.
Additionally, authorities alleged that even after he was indicted, Lopez continued to solicit new investors and issue fake account statements.
A separate civil forfeiture action brought by the U.S. attorney’s office for the District of New Mexico remains ongoing.