Wife Of Big Island Capital Fraudster Sentenced To 24 Months In Prison For Her Role In Million Dollar Ponzi Scheme
United States Attorney Erica H. MacDonald today announced the sentencing of ALEX REAVES LUNDIN, 26, to 24 months in prison for her role in a $1.1 million Ponzi scheme orchestrated by her husband, Jeremy Lundin. LUNDIN, who pleaded guilty on February 15, 2018, was sentenced yesterday before Judge Wilhelmina M. Wright in U.S. District Court in Saint Paul, Minnesota. When announcing the sentence, the Honorable Judge Wright told LUNDIN, “You assisted your husband in a lengthy and complex fraud scheme at the expense of others. Your victims worked hard for their money; for some it was their life savings. You spent victims’ money on yourself, motivated by selfishness and greed to live a lavish lifestyle that you could not afford.”
U.S. Attorney Erica MacDonald said, “Jeremy Lundin swindled hundreds of thousands of dollars from his friends and associates so that he and Alex Lundin could buy luxury cars and take expensive trips. When Alex Lundin found out about her husband’s fraud, rather than taking steps to stop him or make things right, she helped him keep it going for several more months. The Lundins lied to and stole from honest, hard-working individuals who trusted them. Today’s sentence was another step towards justice for those victims.”
“Alex Lundin used investor money for her personal, financial gain. The Lundin’s spent their client’s investment money to enjoy an extravagant and luxurious lifestyle,” stated Special Agent in Charge Gabe Grchan. “Today’s sentencing illustrates that there are consequences for those who use deceit to enrich themselves at the expense of others. IRS Criminal Investigators will continue to pursue individuals who engage in this type of criminal behavior.”
“Today’s sentencing of Ms. Lundin serves as a reminder of the potential penalty for violating the public’s trust in the U.S. mail”, said Craig Goldberg, Postal Inspector in Charge of the Denver Division which covers the Twin Cities.
“Alex Lundin and her husband defrauded friends and neighbors who trusted them with their life savings,” said Minnesota Commerce Commissioner Jessica Looman. “Investment fraud is a serious crime and this case shows that if you commit fraud in Minnesota, you will be prosecuted.”
According to the defendant’s guilty plea and documents filed in court, from approximately December 2014 through May 2017, Jeremy Lundin claimed that he conducted “options trading” through his business Big Island Capital. He worked through a network of the couple’s associates and friends to solicit investors by promising to generate exponential growth through options trading, and obtained $1.1 million from 51 investors over a roughly two-year period. Between May 2015 and May 2017, at least $992,000 in investor funds was deposited into Jeremy Lundin’s “Big Island Capital” bank account. During roughly the same time period, however, Jeremy Lundin transferred $933,950 from the business account directly into his and LUNDIN’s personal checking account. The couple then used the majority of those investor funds on their personal expenses including travel, luxury automobiles, a boat, jewelry, retail purchases, and more than $366,000 in credit card payments.
According to LUNDIN’s guilty plea and documents filed in court, LUNDIN admitted that by October 2016, she became aware that her husband was not conducting options trading as he promised investors, and that she and Jeremy Lundin had spent all of the investor funds on personal expenses. However, LUNDIN continued to assist her husband in carrying out the scheme for another eight months by soliciting new investors and drafting text messages and emails intended to lull current victim-investors into believing their money was safe. During those final eight months when LUNDIN knowingly participated in the scheme, investors gave Jeremy Lundin another $315,000.
Jeremy Lundin pleaded guilty to one count of mail fraud and one count of money laundering. On February 22, 2018, he was sentenced to 110 months in prison.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS, Federal Bureau of Investigation, United States Postal Inspection Service, and Minnesota Department of Commerce Fraud Bureau.
Assistant United States Attorney Amber M. Brennan prosecuted the case.
ALEX REAVES LUNDIN, 26
- Conspiracy to commit mail fraud, 1 count
- 24 months in prison
- 3 years of supervised release
- $315,000 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600