Fraudulent Investment Advisor Sentenced To 36 Months In Prison And Ordered To Pay Victims $886,925.62 In Restitution
BOWLING GREEN, Ky. – A Bowling Green, Kentucky, resident who fraudulently promoted himself as an investment advisor was sentenced to 36 months in prison and ordered to pay victims $886,925.62 in restitution on October 23, 2014, by U.S. District Judge Joseph H. McKinley Jr., announced David J. Hale, United States Attorney for the Western District of Kentucky.
Paul Carney, age 46, previously pleaded guilty to all charges in a 32 count federal indictment including 20 counts of wire fraud and 12 counts of engaging in monetary transactions in criminally derived property of $10,000 or more (money laundering).
Between 2008 and November 2011, Carney devised a scheme where he represented himself as an investment advisor, who knew a stock trader, who could invest contributions in the stock market and make investors a substantial profit. As a result, at least eight known victims gave Carney hundreds of thousands of dollars to invest. Carney later told at least one investor that millions of dollars in profits had been realized, but additional cash investments were required because the profits would not be released until taxes and various fees had been paid, resulting in significant additional payments by the victim. In reality, there was no stock trader, investments, or profits. Carney’s scheme resulted in the total loss of $886,925.62.
Also, in furtherance of this scheme, Carney cashed personal checks and cashier’s checks ranging in amounts from $18,000 to $80,000 from investors and laundered the money through purchases of official bank checks which he used for his own personal benefit. As part of the plea agreement, Carney will forfeit a 2009 Ford Mustang Shelby GT which he purchased for $49,000 from the investment scheme and forfeit property located at 1253 Larmon Mill Road in Bowling Green, also purchased with illegally derived funds from the investment scheme.
This case was prosecuted by Assistant United States Attorney David Weiser and was investigated by the Internal Revenue Service (IRS) Criminal Investigation division.