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Press Release

Michael Schmidt Sentenced To Serve 33 Months In Prison For Wire Fraud

For Immediate Release
U.S. Attorney's Office, Eastern District of Tennessee

GREENEVILLE, Tenn. – Michael Frank Schmidt, 60, of Jonesborough, Tenn., was sentenced on Feb. 2, 2016, by the Honorable R. Leon Jordan, U.S. District Court Judge, to serve 33 months in federal prison.  Judge Jordan also imposed a three-year term of supervised release and ordered Schmidt to pay full restitution to his victims and a $100 special assessment. 

Schmidt pleaded guilty in September 2015 to wire fraud.  According to information included in documents on file with U.S. District Court, Schmidt devised and executed a Ponzi type investor scheme which defrauded 30 individuals of approximately $744,000, over a six-year period of time.  He falsely convinced his victims that they were investing in Toner Depot, a business which had contracts with Tennessee Eastman Company.   

Agencies involved in this investigation included the Tennessee Bureau of Investigation, Morristown, Tennessee Police Department, and Jonesborough, Tennessee Police Department.   Suzanne Kerney-Quillen and Helen Smith, Assistant U.S. Attorneys represented the United States.                                                        



Updated February 4, 2016