Ohio Man Pleads Guilty To Defrauding More Than Two Dozen Victims Out Of More Than 5-Million Dollars
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Gilbert Lynagh, 55, of Dublin, OH, pleaded guilty to conspiracy to commit wire fraud before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
According to Assistant U.S. Attorney MaryEllen Kresse, who is handling the case, between May 2010 and November 2013, the defendant conspired with others to fraudulently obtain money and property from investors. As part of the scheme, in May 2010, Lynagh and another individual 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, the defendant and other members of the conspiracy caused 27 victims to invest over $5,000,000 in i2i Capital and/or i2i Settlement Partners. Lynagh and other members of the conspiracy made false and fraudulent representations to victims regarding the nature of the investment and the associated risks, duration and rates of return. Victim funds were wire transferred from their bank accounts to bank accounts controlled by Lynagh and another individual at Alliance Bank in Oneida, NY. The majority of victim funds were utilized by the defendant 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 Lynagh and other members of the conspiracy. As a result, at least five investors sustained substantial financial hardship by losing retirement or other savings or investment funds.
The plea is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
Sentencing is scheduled for November 4, 2016, before Judge Arcara.