Two Michigan Men Indicted For Operating A $2.1 Million Nationwide Investment Fraud Scheme
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that two Michigan men were indicted by a grand jury in Harrisburg on multiple charges arising out of a nation-wide investment fraud scheme.
According to United States Attorney Peter Smith, Dennis Tubbergen, age 53 , and Christopher Ostrowski, age 53, both of Michigan, were charged with allegedly defrauding investors from California to Pennsylvania between 2010 and 2013. The grand jury found that Tubbergen and Ostrowski used a company based in Grand Rapids, Michigan named GTBK Marketing to sell an investment program called Immediate Legacy (ILP). The United States mail and the internet and email were used to market the investment program nationwide. A material part of their representation to investors was that ILP was being used by hospitals, charities, colleges and universities and that each investor who purchased the program was guaranteed at least 14 pre-contacted customers who were waiting to buy the product.
The investigation established that these alleged material representations were false and that as a result investors lost a total of approximately $2.1 million dollars. Ostrowski is also separately charged with having made false statements and representations to both the FBI and the federal grand jury in Harrisburg when interviewed and questioned in 2013 about his involvement in selling the ILP to potential investors.
The government is also seeking forfeiture of the approximately $2.1 million obtained in connection with the scheme and property by the defendants from the proceeds.
This case was investigated by the Harrisburg Office of the Federal Bureau of Investigation. Assistant United States Attorney William A. Behe has been assigned the prosecution of this case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. The maximum penalty under federal law on each of the wire fraud and conspiracy to commit wire and mail fraud counts is 20 years imprisonment, a term of supervised release following imprisonment, and a $250,000.00 fine. The obstruction of the grand jury charge is punishable by up to 10 years imprisonment and a $250,000.00 fine, while the charges of providing false information to law enforcement and to the federal grand jury are each punishable by up to 5 years imprisonment and a $250,000.00 fine. The Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #