Rindge man Aaron E. Olson, 42, has been ordered to pay $22,811,405.26 in restitution to victims of a sprawling Ponzi scheme he orchestrated from 2007 through 2012. The judgment, handed down yesterday by U.S. District Judge Landya B. McCafferty, holds Olson accountable for losses suffered by 81 investors he systematically defrauded through two unlicensed investment firms.
Olson, who operated as the sole proprietor of AEO Associates (AEO) from 2007 to 2010, later formed KMO Associates LLC (KMO) in Massachusetts in December 2010. Both entities ran out of an office in Jaffrey, New Hampshire. Despite not being licensed as an investment broker in New Hampshire or any other jurisdiction, and failing to register either firm with the state, Olson solicited approximately $27.8 million from individuals and organizations under the false promise of substantial returns.
Instead of investing the funds, Olson funneled roughly $2.6 million for his personal use and fabricated earnings statements to maintain the illusion of profitability. He used new investors’ money to pay fake “returns” to earlier clients—a classic hallmark of Ponzi fraud—while concealing the truth with falsified account reports that showed inflated gains.
The scheme unraveled in March or April of 2012, leaving 81 victims reeling from total losses exceeding $22.8 million. Many had trusted Olson with life savings, retirement funds, and business capital, believing their assets were growing under professional management. Instead, they were feeding a collapsing house of cards built on deception and greed.
Last April, Olson was sentenced to 60 months in federal prison for tax evasion related to unreported income from the fraud. As part of his plea agreement, restitution was mandated, but Olson argued at yesterday’s hearing that he owed only $17.1 million. Prosecutors from the U.S. Attorney’s Office, led by Assistant U.S. Attorney Mark S. Zuckerman, pushed for full repayment of victim losses. Judge McCafferty sided with the government, ordering immediate payment of the full $22,811,405.26.
The investigation was conducted by the IRS Criminal Investigation unit in coordination with the New Hampshire Bureau of Securities Regulation. Authorities emphasized that while criminal penalties serve justice, full restitution remains the only real measure of accountability for victims gutted by financial fraud. Olson’s ability to pay remains dubious, but the ruling ensures the debt is legally enforceable for years to come.
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Key Facts
- State: New Hampshire
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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