CINCINNATI, OH (FOX19) - After a nearly six-month long investigation into former Cincinnati money manager Glen Galemmo, a document filed today in federal court charges Galemmo with one count of money laundering and one count of wire fraud. Galemmo has pled guilty to those charges.
The document details how, in 2008 through 2013, Galemmo took in more than $100 million in investors' money using much of it for his own personal use.
In September, Glen Galemmo sat down for the only time for an interview since his business was seized by the IRS in June and spoke exclusively with FOX19's Amy Wagner.
During that interview, Wagner said, "Investors want the truth. Do you feel at some point the truth will come out? That it can come out?" Galemmo said, "I believe the truth will come out in the end when the process has run its course in the legal matters."
The federal filing states that Galemmo "operated a massive, fraudulent scheme in which Galemmo used clients' money to pay other investors and to pay his own person expenses, rather than invest the funds as promised.
It's a step in the right direction, according to Galemmo's former investor John Rush. "I don't think it's totally over until we hear the judge tell him how long he is going away for," Rush said.
"I have done everything I can to cooperate with the investigation to help investors out any way possible," Galemmo said in September.
Meanwhile, federal investigators say Galemmo, "used investors' money to pay for the mortgage on his home, to purchase his office building and vacation condominium, to purchase vehicles for himself and family members, to pay for expenses incurred by the sports complexes he operated, private school tuition for his children and assorted personal expenses."
It's money Rush has little hope of ever seeing again. "A good day for investors if we got back a chunk of change, but when you know it's sayanara. I don't know if it's vengeance but justice is the only thing left on the table," Rush said.
The document also states upon conviction, Galemmo will forfeit the assets feds have already seized, which are worth a combined $3 million dollars.
The next step is likely a hearing where Galemmo will officially will enter a guilty plea. An IRS spokesperson says it will likely be several months before Galemmo is sentenced.