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Justice News

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

Thursday, February 11, 2016

Las Vegas Man Sentenced For Wire Fraud

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

BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that John Nielsen, 44, of Las Vegas, Nevada, who was convicted of wire fraud, was sentenced to 15 months in prison by U.S. District Court Judge Richard J. Arcara.

Assistant U.S. Attorneys Russell T. Ippolito, Jr. and Elizabeth R. Moellering, who handled the case, stated that the defendant was involved in an investment loan scheme which resulted in $175,000 dollars in financial losses to an investment company, Preston Waters Corp., located in the Western District of New York. Nielsen represented to the company that he could obtain a standby letter of credit from banks outside the United States. The defendant assured representatives that he could monetize the stand by letter of credit which would provide the investment company with $100 million dollars in loans. As part of the scheme, Nielsen required the investment company to provide him with $175,000 which would purportedly cover the costs associated with the financial transaction. The investment company provided the funds but instead of using the money to obtain financing, the defendant, and his co-conspirator, used the funds for their own purposes. 

The plea was the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.

Updated February 12, 2016