Jasen Snelling of Cincinnati sentenced for $2M Ponzi Scheme - Cincinnati News, FOX19-WXIX TV

Cincinnati man sentenced for $2M Ponzi Scheme

CINCINNATI, OH (FOX19) -

Jasen Snelling, 48, Cincinnati, was sentenced to 131 months in prison and ordered to pay restitution to victims and the IRS for his role in an investment scheme that ensnared approximately 72 investors in Ohio, Indiana and Kentucky.

Back in June of 2012, Snelling pleaded guilty to crimes arising out of his partial operation of a multi-million dollar Ponzi scheme.

Snelling admitted that he engaged in a mail and wire fraud conspiracy  in connection with a scheme to defraud investors in CityFund and Dunhill, two bogus "day trading" entities which were nothing more than bank accounts where investors' funds were deposited and then spent by Snelling and his co-conspirator, Jerry Smith.

Snelling also admitted that he engaged in obstruction by creating fictitious trading statements and providing them to federal agents to impede the investigation and cover up the fraud.

Finally, Snelling admitted that he committed tax evasion by failing to report the embezzled investor funds as income on his tax returns for the tax year 2008 and additional tax years.

Early investors were paid interest or return of capital payments, which were not generated by investment earnings, but rather by monies solicited from later investors.

Carter M. Stewart, United States Attorney for the Southern District of Ohio says those payments served to lull the victims into a false sense of security and slowed them from thinking anything was amiss with their money.

During the course of this fraudulent scheme, Snelling made ATM withdrawals directly out of the CityFund account and paid for many personal expenses including his mortgage, his children's private school tuition, and his credit card. 

For the 2005 through 2010 income tax years, Snelling willfully and knowingly omitted a total of $2.1M in income derived from the stolen investment funds on his personal income tax returns, resulting in a total tax loss to the IRS of $596,000. He now has to pay the victims and the IRS back in full.

Snelling was ordered to forfeit a boat, trailer and real estate he owned in Michigan.

Officials say his co-conspirator, Jerry Smith, 50, Brookville, Indiana is scheduled to be sentenced January 17, 2013.

Powered by Frankly