Office of the United States Attorney, John S. Leonardo
District of Arizona
July 2, 2013
PHOENIX, Ariz. - Jay Kevin Perry, 38, of Phoenix, Ariz., was sentenced today by U.S. District Court Judge Paul G. Rosenblatt to 44 months in prison for engaging in a bankruptcy fraud scheme that targeted elderly investors. Another hearing before Judge Rosenblatt, to resolve the nearly $1 million in restitution claims filed against Perry, is currently scheduled for August 6, 2013.
"Unfortunately, the problem of investment scams targeting the elderly has become rampant,” said John S. Leonardo, United States Attorney. “This case sends a strong message that the United States Attorney’s Office, the United States Secret Service, and the FBI are committed to the investigation and prosecution of investment managers who defraud the most vulnerable members of our community. The fact that some of the victims of this scheme were infirm, in their 90s, and lost their life savings makes this defendant particularly deserving of a prison sentence."
Perry defrauded elderly estate-planning clients, many of whom lived in Sun City, Ariz., and ranged in age from the 60s to the late 90s, by convincing them to liquidate annuities and loan money to him. Although Perry promised reasonable returns on these “loans,” he made few if any payments to his clients. In some cases, Perry secured his clients’ “loans” with a commercial property on which he had failed to make payments. Unbeknownst to his clients, Perry also filed for bankruptcy, and in his bankruptcy petition he intentionally omitted the addresses of his clients (which had the effect of concealing that he was attempting to discharge the debts he owed them).
The investigation in this case was conducted by the United States Secret Service and the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorney Kevin M. Rapp.
CASE NUMBER: CR 11-2291-PHX-PGR
RELEASE NUMBER: 2013-051_Perry
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/