Anchorage Man sentenced to 37 months in prison for running investment fraud scheme
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was sentenced in federal court today for running an investment fraud scheme which targeted small investors in Anchorage in 2011 and 2012.
Floyd LeRoy Lee, Jr., 32, of Anchorage, Alaska, was sentenced by U.S. District Judge Sharon Gleason to 37 months in prison following his conviction for one count of securities fraud, and one count of mail fraud.
According to Assistant U.S. Attorney Joseph Bottini, who prosecuted the case, Lee set up an investment company – Platinum Investments, Inc. – in Anchorage in October 2010. Lee, assisted by his co-defendant in the case, Mary Elizabeth Transki, then solicited investors with the promise of high-yield returns in a brief amount of time. Between September 2011, and March 2012, Lee and Transki took in approximately $63,000 in investment funds. After receiving the money, Lee and Transki did not invest it as promised and instead used the funds for their own personal use and benefit.
Lee and Transki were indicted by a federal grand jury in April 2013 for one count each of securities fraud related to the investment fraud scheme. Lee was also indicted for one count of mail fraud. Transki and Lee each pled guilty in June of this year to the securities fraud charge, and Lee additionally pled guilty to the mail fraud count. On August 19, 2013, Transki was sentenced to 21 months in prison for her role in the fraud scheme.
In sentencing Lee to 37 months in prison, Judge Gleason noted that Lee and Transki had preyed on small investors who are the type of individuals least able to absorb the loss of investment funds.
Ms. Loeffler commends the Federal Bureau of Investigation for their investigation of this case.