President’s Financial Fraud Enforcement Task Force is on the move to prosecute and incarcerate those company officials that steal investors funds. Beware FFGO / NMGL, you are reported and on the scrutiny list. Hold on FFGOers, the cavalry is on its way!
Shelton Resident Admits Defrauding Investors of $300,000
U.S. Attorney’s Office February 27, 2012
District of Connecticut (203) 821-3700
David B. Fein, United States Attorney for the District of Connecticut, announced that JOHN H. GOLDSMITH, 57, of Shelton, pleaded guilty today before United States District Judge Stefan R. Underhill in Bridgeport to one count of securities fraud stemming from a $300,000 investment fraud scheme.
According to court documents and statements made in court, between approximately 2005 and 2010, GOLDSMITH devised and executed a scheme through which he solicited investments from victims in various nonexistent companies. In one instance, GOLDSMITH claimed that some of the investments were to be used to purchase stock in a publicly traded company at discounted rates. In another scheme, GOLDSMITH claimed that invested funds were to be used to set up a video-sharing website. Through these schemes, GOLDSMITH defrauded investors of approximately $300,000 by converting a significant portion of invested funds to his own personal use. GOLDSMITH concealed his activities by fabricating checks and bank records, and also by using one investor’s funds to repay another investor.
Judge Underhill has scheduled sentencing for May 21, 2012, at which time GOLDSMITH faces a maximum term of imprisonment of 20 years and a fine of up to $5 million.
This matter is being investigated by the Federal Bureau of Investigation and the Connecticut Securities, Commodities, and Investor Fraud Task Force. The case is being prosecuted by Special Assistant United States Attorney Liam Brennan.
The Connecticut Securities, Commodities, and Investor Fraud Task Force investigates matters relating to insider trading, market manipulation, Ponzi schemes, investor fraud, financial statement fraud, violations of the Foreign Corrupt Practices Act, and embezzlement. The task force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service-Criminal Investigation; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of Justice’s Criminal Division, Fraud Section and Antitrust Division; U.S. Securities and Exchange Commission (SEC); U.S. Commodity Futures Trading Commission (CFTC); Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Office of the Chief State’s Attorney; State of Connecticut Department of Banking; Greenwich Police Department; and Stamford Police Department.
Citizens are encouraged to report any financial fraud schemes by calling, toll free, 855-236-9740, or by sending an e-mail to ctsecuritiesfraud@ic.fbi.gov.
This case was brought in coordination with the President’s Financial Fraud Enforcement Task Force, which was established to wage an aggressive and coordinated effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.
