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Justice News

Department of Justice
U.S. Attorney’s Office
Western District of New York

FOR IMMEDIATE RELEASE
Wednesday, January 29, 2020

Lancaster Man Sentenced For Fraud

CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051

BUFFALO, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that Christopher Dillon, 55, of Lancaster, NY, who was convicted of conspiracy to commit wire fraud, was sentenced to serve 52 months in prison by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay restitution totaling $5,245,862. 

Assistant U.S. Attorneys Douglas A. Penrose and MaryEllen Kresse, who handled the case, stated that between May 2010 and November 2013, Dillon conspired with others fraudulently to obtain money and property from investors. As part of the scheme, Dillon and co-conspirator Gilbert Lynagh formed two companies – i2i Capital LLC and i2i Settlement Partners LLC – which were incorporated in Delaware but listed a business address in Lancaster, NY.

Thereafter, Dillon, Lynagh, and other members of the conspiracy caused 27 victims to invest over $5,000,000 in i2i Capital and/or i2i Settlement Partners. False and fraudulent representations were made to victims regarding the nature of the investment and the associated risks, duration, and rates of return. Victim funds were wire transferred from the victim’s bank accounts to bank accounts controlled by Dillon and Lynagh at Alliance Bank in Oneida, NY.

The majority of victim funds were utilized by Dillon, Lynagh, and other members of the conspiracy in a manner that was not authorized by the victims, including for personal use. None of the victims received the promised return on their investments, and none saw the return of their original investment funds as promised by Dillon, Lynagh, and other members of the conspiracy. As a result, at least five investors suffered substantial financial hardship by losing retirement or other savings or investment funds. 

Gilbert Lynagh was convicted for his role in the conspiracy in July 2016. Another co-conspirator, Leonard Smith, was convicted for his role in the scheme in August 2019 and is awaiting sentencing. 

The sentencing is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Gary Loeffert.

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Topic(s): 
Financial Fraud
Tax
Updated January 29, 2020