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Press Release

St. Anthony Man Sentenced To 10 Years In Prison For Defrauding More Than $19 Million From Investors

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

United States Attorney Andrew M. Luger announced the sentencing of TYRONE HERMAN, 56, to 10 years in federal prison for defrauding investors of more than $19 million. HERMAN, who pleaded guilty on October 20, 2014, to one count of wire fraud, was sentenced on May 26, 2015, by Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minn.

"Investment fraud wreaks havoc on real people whose lives and futures are devastated by unscrupulous criminals like Tyrone Herman," said U.S. Attorney Luger. "Working closely with our colleagues from the Minnesota Department of Commerce and the Federal Bureau of Investigation, we are protecting more people than ever before, making it clear to those who would engage in investment fraud that there are significant penalties for such crimes."

Minnesota Department of Commerce Commissioner Mike Rothman said: "We will continue to fight investment fraud and criminal Ponzi schemes. This case highlights the important role of the Commerce Fraud Bureau in protecting Minnesotans against financial crimes. After a concerned citizen gave a tip to our securities investigators, agents from our Fraud Bureau and the FBI collaborated to investigate and stop this fraud scheme that victimized dozens of individuals, many of them seniors."

According to his guilty plea and documents filed in court, HERMAN, from 1998 through December 2013, operated Executive Marketing Group (EMG) and Ty Herman & Associates, which he claimed had business relationships with manufacturers and wholesalers from whom he could purchase small appliances and other inventory at below-retail market rates. HERMAN told the victims that he could re-sell the inventory in which they invested for a profit of 35 percent, and that victims would receive their money back, with a 30 percent rate of return, within 90 days of the sale of inventory.

According to his guilty plea and documents filed in court, HERMAN created false invoices to demonstrate to victims that had sold the inventory. When they demanded return of their investments, HERMAN provided fake bank statements, purporting to show that, while he had the money in his bank account, the Internal Revenue Service had frozen the account so that he could not access the victims’ money. HERMAN repaid some investors with Ponzi-type payments, not from the sale of inventory.

According to HERMAN’S guilty plea and documents filed in court, he stole more than $19 million from 51 separate victims.

This case is the result of an investigation conducted by the Minnesota Department of Commerce Fraud Bureau and the Federal Bureau of Investigation.

Assistant U.S. Attorney Karen Schommer prosecuted the case.


Defendant Information:


St. Anthony, Minn.



• Wire Fraud, 1 count



• 120 months in prison

• Three years supervised release



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United States Attorney’s Office, District of Minnesota: (612) 664-5600

Updated May 28, 2015