Florida Man Convicted Of Defrauding U.S. Investors
BOSTON – A Florida man was convicted today following a jury trial for his role in a scheme to defraud investors from across the country out of millions of dollars.
Alan Gilner, 78, of New Smyrna Beach, Fla., was convicted of conspiracy, mail fraud, wire fraud and money laundering following a seven-day jury trial. Last month, Randi A. Bochinski, a Canadian citizen, pleaded guilty to wire fraud, mail fraud, and money laundering for his role in the scheme.
Gilner was convicted for his role in a conspiracy to promote a series of high-yield investment programs. Gilner and Bochinski promised investors significant returns on their investments within a short amount of time. Gilner recruited United States-based investors, including friends and acquaintances in Florida, and also advertised in an investment newsletter that was distributed throughout the United States. Gilner often made the initial presentations selling the high yield investments and brought Bochinski in when he needed assistance in convincing someone to invest. Once investors sent their money to either Gilner or Bochinski, the defendants diverted the invested funds for other uses, including their own personal use.
In order to lull investors into believing that their funds had been invested as promised, Bochinski and Gilner often made at least some of the promised “return” payments, using other investor money to fund the “returns.” In some instances, Bochinski and Gilner attempted to return principal to frustrated investors by using counterfeit checks.
U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for Gilner on September 26, 2013. Bochinski is scheduled to be sentenced on October 3, 2013.
The statutory maximum penalty for the conspiracy charge is five years in prison, to be followed by three years of supervised release and a $250,000 fine. The statutory maximum penalties for the mail and wire fraud charges are 20 years in prison, to be followed by three years of supervised release and a $250,000 fine. The statutory maximum penalty for the money laundering charge is 10 years in prison, to be followed by three years supervised release, and a $250,000 fine.
United States Attorney Carmen M. Ortiz, Kevin Niland, Inspector in Charge of the United States Postal Inspection Service, and William P. Offord, Special Agent in Charge of the U.S. Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by the Assistant U.S. Attorneys Sarah E. Walters and Stephen E. Frank of Ortiz’s Economic Crimes Unit.