FOR IMMEDIATE RELEASE
April 28, 2011
TRENTON, N.J. – A Cresco, Pennsylvania man was sentenced today to 41 months in prison for engaging in an investment fraud scheme that defrauded investors of approximately $850,000, U.S. Attorney Paul J. Fishman announced.
Joseph Nedomatsky, a/k/a “Joseph Leroy,” 62, previously pleaded guilty to an Information charging him with one count of mail fraud. Chief U.S. District Judge Garrett E. Brown, Jr. imposed sentence today in Trenton federal court.
According to the Information to which Nedomatsky pleaded guilty and statements made in court:
Nedomatksy admitted that from December 1998 through June 2007, he operated a business named “L.A.M. Associates,” which purported to offer investment services. As part of the scheme, Nedomatsky placed advertisements in faith-based magazines for L.A.M. Associates offering investment services and guaranteeing 12% annual returns on investments of a minimum of $5,000 for a minimum 60-month term. He also admitted that he told investors that their money would be invested in securities and real estate tax liens. Instead of investing the money, however, Nedomatsky used the money for personal expenses, including to pay his credit card bills and to support individuals he met on the internet, among other things.
In addition to the prison term, Chief Judge Brown sentenced Nedomatsky to three years of supervised release and ordered him to pay $857,866.77 in restitution to the victims of his offense.
U.S. Attorney Fishman credited Special Agents of the FBI’s Franklin Township Resident Agency, under the direction of Special Agent in Charge Michael B. Ward in Newark, for the investigation leading to the conviction.
The Government is represented by Assistant U.S. Attorney Harvey Bartle of the Criminal Division in Trenton.
Defense counsel: Andrea Bergman, Esq., Assistant Federal Public Defender, Trenton