Glen Galemmo Agrees to Plead Guilty to Wire Fraud and Money Laundering
Glen Galemmo, a Cincinnati investment advisor and founder of Queen City Investment Fund, agreed to plead guilty to wire fraud and money laundering charges. He was charged with running a massive Ponzi scheme promising investment returns would reach more that 400% annually.
Between 50 and 200 investors allegedly lost between $7 million and $20 million from Galemmo’s scheme but more than 160 investors claimed he bilked them out of as much as $300 million.
Glen Galemmo operated his alleged scheme from before 2005 until July 2013. He invested a small portion of the funds but used the vast majority of it for personal expenses, to buy his office building, vacation condo, and vehicles, pay private school tuition, operate two sports entertainment, and to hide his fraud by paying off investors, according to investor complaints.
Galemmo reportedly recruited investors by targeting friends, parishioners, and his social network.
In addition to than issuing false statements about his fund’s success, Galemmo bought an office building and 10 large computer screens to convey the false impression that he was constantly monitoring the market. He created fictitious trading accounts from Goldman Sachs and Lightspeed Trading, and took out short-term loans from investors, setting up fake I.R.A. and 401K accounts in their names. He received about $89 million in investments and $29 million in short-term loans, the complaints charged.
On July 17, Galemmo notified investors that his business was shutting down. He and his family moved out of state leaving their $600,000 house.
Galemmo faces up to 40 years imprisonment, 20 per count, and potentially millions of dollars in fines. He agreed to pay restitution and to forfeit more than $1.7 million from personal investment and checking accounts, his office building at 2230 Park Ave., two homes in Cincinnati and Florida and five vehicles. No sentencing date has been set yet.
The Peiffer Wolf securities attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud, or stockbroker misconduct. They are investigating the possibility of assisting investors with the recovery of their losses. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers at Peiffer Wolf, Jason Kane or Joe Peiffer, for a free, no obligation evaluation of their recovery options, at 585-310-5140.