$2.2 Million Ponzi Scheme Lands Pittsburgh Man 5 Years in Prison

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Pittsburgh Man Sentenced to 5 Years in Prison for Defrauding Investors of $2.2 Million

A Pittsburgh-area man has been sentenced to 60 months in prison for his role in a massive Ponzi scheme that left investors reeling with losses of over $2.2 million.

Albert P. Majkowski, Jr., 59, was found guilty by a jury in January of wire fraud and tax violations after a decade-long scam in which he made false statements about his business success, misrepresented his wealth, and produced fake documents to lure in investors.

According to the evidence presented during the trial, Majkowski defrauded potential investors by making false claims about his success in ‘incubating’ start-up businesses, misrepresenting his personal wealth, and producing a series of false documents that inflated the assets of his company and the funding he was supposedly receiving from outside sources.

The scheme, which lasted nearly a decade, also involved Majkowski evading his income tax obligations for the years 2007 through 2010 by failing to file tax returns, putting his assets in the names of other persons, and manipulating a series of checks made out in blank or to cash.

The evidence produced at trial showed that Majkowski evaded nearly $200,000 in federal income tax on income of more than $700,000. The presiding judge, U.S. District Court Judge Reggie Walton, made a finding at the time of sentencing that various investors had lost more than $2.2 million that they had entrusted to Majkowski.

At the sentencing proceeding, Majkowski was given 60 months in prison to be followed by three years of supervised release and ordered to pay more than $2.2 million to defrauded investors as well as restitution to the IRS of $181,456.

The Internal Revenue Service, Criminal Investigations, and the United States Postal Inspection Service conducted the investigation leading to the charges in this case.

The case serves as a stark reminder of the devastating consequences of financial fraud and the importance of vigilance in protecting one’s investments.