FOR IMMEDIATE RELEASE
WEDNESDAY, April 22, 2009
WWW.USDOJ.GOV/USAO/MA
CONTACT: CHRISTINA DiIORIO-STERLING
PHONE: (617) 748-3356
CHRISTINA.STERLING@USDOJ.GOV
FORMER STOCKBROKER CHARGED WITH FRAUD
Springfield, MA. - A former stockbroker now living in Holyoke was charged yesterday in connection with a Ponzi scheme that defrauded multiple investors in the western Massachusetts area.
Acting United States Attorney Michael K. Loucks and Susan Dukes, Special Agent in Charge of the Internal Revenue Service Criminal Investigation -Boston Field Division, announced today that LEWIS HOFF, 48, of Holyoke, MA, was charged in a fourteen count indictment with wire fraud, investment advisor act fraud, money laundering and failure to file a tax return. The charges stem from a Ponzi scheme that spanned more than a two-year period during which HOFF solicited funds from friends and acquaintances to invest in securities with a promised quick profit. Rather than investing the money, HOFF deposited the funds in his own bank account, using the money for personal expenses and to pay off earlier investors.
The Indictment charges that HOFF met prospective investors at area country clubs and at a local restaurant. He told these individuals that they could make quick and significant returns on their money by investing in securities through him. When initial “investments” yielded profits, the individuals gave HOFF additional funds to invest. The Indictment charges that none of the money was invested but was used to pay off other “investors” and support HOFF.
HOFF had previously been convicted in Florida of mail fraud charges and in Massachusetts of transporting stolen money over state lines in connection with similar investment schemes.
If convicted on these charges, HOFF faces up to 20 years imprisonment, to be followed by five years of supervised release, and a $ 250,000 fine.
The case was investigated by the Internal Revenue Service Criminal Investigation. It is being prosecuted by Assistant U.S. Attorney Karen Goodwin of the Springfield Branch Office.
The details contained in the indictment are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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