Rose Marie OReilly, Ponzi Scheme, Texas 2024

A 63-year-old woman from La Grange, TX, was sentenced to 48 months in federal prison for her role in an estimated $1.4 Million Ponzi scheme announced United States Attorney Richard L. Durbin, Jr.

Rose Marie O’Reilly, of La Grange, was sentenced in Austin today. In addition to the prison term, United States District Judge Sam Sparks ordered that O’Reilly pay $1,463,128.50 restitution and to be placed on supervised release for a period of three years after completing her prison term.

“O’Reilly ran a classic con with a dazzling twist–offering the allure of collectible silver antiques and pink diamonds. Like all Ponzi schemes, at its core was a simple scheme to defraud investors and use their money for her own gain,” said United States Attorney Richard L. Durbin, Jr.

O’Reilly pleaded guilty to one count of money laundering on September 23, 2015. By pleading guilty, O’Reilly admitted that from August 2007 to August 2012, she stole money from investors through an antiques and jewelry acquisition scheme and engaged in monetary transactions with criminally derived property.

According to court documents, O’Reilly convinced investors that various antiques and jewelry items purchased with their investment funds could be resold for profit. Some of the antiques and jewelry pieces in her scheme included the Spratling Silver Banquet Set purportedly commissioned by deceased Country and Western singer Marty Robbins. O’Reilly convinced investors that once the “lost” pieces were reunited with the set, they could then sell the complete collection for the anticipated price of $21 million.

O’Reilly also convinced investors that she could acquire, and then resell for profit, an assortment of pink diamond jewelry formerly owned by alleged New Orleans mob boss Carlos Macello.

The FBI, IRS-Criminal Investigation, and the Texas State Securities Board conducted a joint investigation into O’Reilly’s scheme. Assistant United States Attorney Sharon Pierce prosecuted the case on behalf of the Government.

“The FBI will continue to vigorously pursue scam artists, like the defendant, who convince others to entrust them with their hard-earned money, but instead use that money for personal gain,” said FBI Special Agent in Charge Christopher Combs. “This sentence ensures that Mrs. O’Reilly is punished and sends the strong message that investment schemes don’t pay.”

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