BUFFALO, N.Y. – A seasoned criminal, Steven D. Blumhagen, 71, has once again found himself in legal hot water after pleading guilty to wire fraud before U.S. District Judge John L. Sinatra, Jr. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Blumhagen’s latest crime involved defrauding three investors out of $400,000 between April 2016 and January 2020. He convinced victims to buy interests in entities he claimed to own or control, promising significant returns on their investments in legal marijuana operations, real estate developments, and investment technology. However, Blumhagen pocketed the money for personal expenses.
This is not Blumhagen’s first brush with the law. He previously pleaded guilty to conspiracy to commit mail fraud in 2006, bilking investors out of over $10 million in a golf course scheme, and was sentenced to 57 months in prison. In 2018, he was also convicted of bank theft for his role in a bond scheme that raised more than $1.4 million from potential investors, leading to another sentence and restitution order.
Blumhagen was on pre-trial release for the bank theft charge when he committed this new wire fraud offense. The plea comes as his federal trial was set to begin.
The investigation into Blumhagen’s fraudulent activities was led by the Federal Bureau of Investigation under Acting Special Agent-in-Charge Darren Cox. Sentencing is scheduled for June 9, 2023.
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|White Collar Crime|Organized Crime
- Source: Official Source ↗
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