Home Philadelphia Press Releases 2010 Berwyn Man Indicted for Running $17 Million Ponzi Scheme
Info
This is archived material from the Federal Bureau of Investigation (FBI) website. It may contain outdated information and links may no longer function.

Berwyn Man Indicted for Running $17 Million Ponzi Scheme

U.S. Attorney’s Office November 05, 2010
  • Eastern District of Pennsylvania (215) 861-8200

Robert Stinson, Jr. was charged in a 26-count indictment, unsealed today, in a Ponzi scheme that defrauded more than 260 investors of more than $17 million, announced United States Attorney Zane David Memeger. The charges include five counts of wire fraud, four counts of mail fraud, nine counts of money laundering, one count of bank fraud, three counts of filing false tax returns, two counts of obstruction of justice, and two counts of making false statements to federal agents. Stinson was arrested this morning.

The indictment alleges that since 2006 Stinson ran a company called Life’s Good, Inc., that solicited investments in one of four real estate hedge funds, promising fixed returns of between 10 to 16 percent annually. However, rather than invest the money as promised, Stinson ran an elaborate “Ponzi” scheme that he used to steal more than $17 million from the investors.

According to the indictment, Stinson falsely represented to investors that he was a graduate of Massachusetts Institute of Technology with a wealth of business experience, when, in reality, he had been convicted of fraud multiple times and had previously been enjoined from committing securities fraud by the United States Securities and Exchange Commission.

As part of this investigation, the Federal Bureau of Investigation executed numerous search warrants on June 29, 2010, and seized two Mercedes Benz sedans that Stinson had purchased with proceeds from his fraud. At the time of the search, Stinson allegedly obstructed justice by wiring stolen funds out of Life’s Good bank accounts to other accounts.

INFORMATION REGARDING THE DEFENDANT
NAME: Robert Stinson
ADDRESS: Berwyn, PA
AGE OR YEAR OF BIRTH: 55

If convicted, the defendant faces a maximum possible sentence of 329 years’ imprisonment, a $6.8 million fine, five years’ supervised release, and a $2,600 special assessment.

The case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, the Internal Revenue Service Criminal Investigation Division, and the Securities Exchange Commission. It is being prosecuted by Assistant United States Attorneys Richard J. Zack and David L. Axelrod.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

This content has been reproduced from its original source.