North Wales Con Man Joshua Coleman Gets 4 Years in Federal Prison for $72 Million Fraud

PHILADELPHIA – Joshua Coleman, 39, of North Wales, Pennsylvania, will spend the next 48 months behind bars after being sentenced today for orchestrating a brazen $72 million fraud scheme. U.S. District Judge Kelley Brisbon Hodge also ordered Coleman to pay $57,239,616.90 in restitution and serve three years of supervised release. The sentence comes after Coleman pleaded guilty in September 2023 to four counts of wire fraud.

According to court filings, Coleman systematically deceived two lenders, known as Lender #1 and Lender #2, between August 2020 and June 2022. He convinced them to loan him a staggering $72 million, falsely claiming the funds would be used to acquire insurance companies. The actual loss suffered by the lenders is estimated between $9.5 million and $25 million. But the reality? Coleman only used a paltry $10.9 million to actually buy insurance companies. The rest – a jaw-dropping $61 million – vanished into a black hole of personal expenses, business debts, and funding for other companies he controlled.

The scam quickly unraveled when investigators discovered Coleman was using new loan proceeds to cover old debts. Just one day after receiving $25 million from Lender #1, he wired a hefty $20.2 million to Individuals #1 and #2, former investment clients he’d previously swindled. Court documents reveal Coleman had already admitted to misappropriating $20 million of those clients’ assets and agreed to repay them – with interest, naturally – using the new loan money. It was a classic Ponzi scheme in disguise, using Peter to pay Paul, and then lying about it all.

As Coleman’s financial pressures mounted in 2021, he turned to Lender #2 for another massive loan. To secure the $47.6 million, he forged documents, including falsified lien termination forms. He claimed the liens were lifted, when in reality, they remained firmly in place. The lies didn’t stop there; Coleman fabricated other critical paperwork to convince Lender #2 to approve the loan and release the funds. Of that $47.6 million, only $10.9 million went toward purchasing Insurance Company #1. The remaining $36.8 million? More misappropriation, including a staggering $11.5 million used to repay Lender #1 – essentially robbing one lender with money from another.

“Coleman brazenly lied to his lenders, falsifying documents and forging signatures to help conceal his scheme,” stated U.S. Attorney David Metcalf. “Instead of using the funds as intended, he spent most of those millions paying off business debts and for personal expenses. My office will continue to target significant financial crimes like this and prosecute the fraudsters responsible.” Wayne A. Jacobs, Special Agent in Charge of the FBI’s Philadelphia Field Office, added, “This sentencing reflects our commitment to holding accountable those who seek personal profit through lies and deceit.”

The FBI, the Federal Housing Finance Agency Office of Inspector General, and the Securities and Exchange Commission (SEC) investigated the case. Assistant U.S. Attorneys Anita Eve and Francis Weber prosecuted the matter. The SEC has also filed separate civil charges against Coleman, meaning his legal troubles are far from over. This case serves as a stark reminder that financial crimes, no matter how complex, will be pursued and punished.

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