Ponzi Scheme in Ohio
An Ohio woman, aged 71, has been sentenced to 9 years in prison for leading a Ponzi scheme. 2½ years of this sentence have already been served, reducing the time to 6 ½ years.
Together with her husband Alan, Joanne Schneider ran a Ponzi scheme that defrauded nearly 900 investors of $60 million. The husband-and-wife team had proposed a retail-and-entertainment development project in Parma Heights, a Cleveland suburb. Needless to say, the fraudulent project was never built.
In May 2011 she pleaded guilty to 11 felony charges, including 5 counts of securities fraud, 2 counts of selling unregistered securities, and 1 count each of engaging in a pattern of corrupt activity, making misrepresentations in the sale of securities, theft involving an elderly victim, and money laundering. Her husband, who had played a lesser role in the scheme, pleaded guilty earlier on, in 2009, to security and theft charges and was put on probation.
After an appointed receiver took possession of the Schneiders’ joint assets and of Joanne
Schneider’s individual assets, $10.5 million has been recovered for investors so far.