October 10, 2007

BOGUS “COMMODITIES TRADER” SENTENCED TO JAIL

The Office of the United States Attorney for the District of Vermont stated that Gary F. Scholze, 60, of New Castle, Pennsylvania, was sentenced yesterday by U.S. District Court Judge William K. Sessions, III, to 63 months in federal prison for defrauding investors of over $2,000,000. In late 2006, Scholze pleaded guilty to wire fraud and mail fraud based upon his scheme to hold himself out as an expert commodities trader. From 2001to 2005, he persuaded 32 people nationwide to send him money by representing that this money would be invested in commodities trading. Instead of investing the money, Scholze spent it on personal expenses such as a house in Mexico. His victims included friends, family and lovers. The total loss to victims was $2,193,835. Judge Sessions stated that the court will enter a restitution order requiring repayment of the losses.

At the sentencing hearing yesterday, 10 victims described their experiences with Scholze to Judge Sessions. Four victims were Vermonters, two of whom first reported the fraud to the Federal Bureau of Investigation. The defense, arguing for a more lenient, reduced sentence, relied upon the testimony of Dr. Thomas Powell of Shelburne, Vermont. Dr. Powell testified that Scholze, a college graduate and retired chiropractor, suffered from a significantly reduced mental capacity that impaired his ability to control his criminal behavior, due to Post-Traumatic Stress Disorder. Judge Sessions refused to reduce the sentence.

Scholze was ordered to report to the Federal Bureau of Prisons to begin his jail term on November 27, 2007.

The United States was represented by Assistant U.S. Attorney William Darrow. Scholze was represented by attorney Lisa Shelkrot of Burlington.