Investment Advisors Ferry, Clinton, and Martin Sentenced for Fraudulent Investment Scheme
William J. Ferry, Dennis J. Clinton, and Paul R. Martin were sentenced for their roles in attempting to defraud wealthy investors of $1 billion through a high-yield investment fraud scheme. According to the Department of Justice Public Affairs office the sentence was handed down last Tuesday on November 19, 2013.
William Ferry, 71, a former stock broker and investment advisor and a resident of Newport Beach, Calif., was sentenced to serve 15 months in prison.
Dennis Clinton, 65, a former real estate investment manager from San Diego, Calif., was sentenced to 30 months in prison.
Paul Marti, 64, a former senior vice president and managing director of bankers Trust from New Jersey was sentenced to 30 months in prison.
The three were convicted on July 31, 2012, of conspiracy, mail fraud and wire fraud. The investors that they tried to defraud were undercover FBI agents who posed as wealthy investors and investment managers. The FBI operation was an effort to stop the fraudsters before they could defraud innocent civilians.
Evidence shown at trial established that from February to December 2006, the three conspired with others to promote a high-yield investment that promised extremely high return at little or no risk.
The scheme was touted as a “Fed Trade Program” that was closely regulated by the Federal Reserve. Investors were told that once the investment program passed compliance it would be registered with the Fed.
The defendants falsely represented to the undercover agents that they would facilitate a meeting between the ostensible investors and a Federal Reserve official and / or the chairman of the board of a major U.S. bank to confirm the existence of the touted investment program.
The defendants likewise falsely claimed that the purpose of the investment program was to generate funds funding projects and humanitarian purposes such as Hurricane Katrina relief. A portion of the profits, they claimed, would go to humanitarian projects.
While the scheme as on-going Ferry acted as an underwriter and member of the compliance team. Martin was the banking expert and Clinton was the trouble shooter during the compliance phase and transfer of funds to the Swiss banker.
Another conspirator, Brad Keith Lee, of California who acted as the contact with the Swiss banker, pled guilty to conspiracy and wire fraud. While Oregon resident John Brent Leiske who acted as trader during the scheme also pled guilty to conspiracy, mail fraud and wire fraud.
The Peiffer Wolf securities attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud or misconduct. 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.