Northeastern Pennsylvania Man Sentenced To 97 Months In Prison For $1.8 Million Investment Fraud

HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Bartonsville man was sentenced today to 97 months in prison by United States District Court Judge Sylvia H. Rambo in Harrisburg to a charge stemming from an investment fraud.

According to United States Attorney Peter Smith, Joseph Gallardo, age 48, Bartonsville,  previously plead guilty to mail fraud in September 2014.  Gallardo was a registered investment advisor with investment firms in New Jersey and Pennsylvania. He persuaded clients with those investment firms to invest in Blue Meadow Group LLL, his personal real estate venture. Victims were guaranteed attractive rates of return and were falsely told that their money was invested in and protected by real estate. Contrary to what was represented to the victims, Blue Meadow Group was not a real estate investment trust and its securities were not registered with the Pennsylvania and New Jersey Securities Commissions.

In fact, victims’ monies were used to purchase a gas station and convenience store and to fund Gallardo’s on-line day trading account that lost a substantial amount of money.  Investigators determined that victims of Gallardo’s criminal activity lost approximately $1.8 million.

During July 2009, the Pennsylvania Securities Commission issued a cease and desist order ordering Gallardo to stop offering or selling investment properties in Pennsylvania. After the cease and desist order, Gallardo solicited additional victims who invested money with him.

Gallardo was indicted by a federal grand jury in September 2014 as a result of an investigation by the United States Postal Inspection Service.  Assistant U.S. Attorney Christy H. Fawcett prosecuted the case.     

Judge Rambo ordered the defendant to pay restitution in the amount of $1,792,170 to victims and to serve a three-year term of supervised release following his incarceration.

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