Joshua Coleman, Wire Fraud, Pennsylvania 2021

PHILADELPHIA – Joshua Coleman, 39, of North Wales, Pennsylvania, is trading his tailored suits for an orange jumpsuit after being sentenced to 48 months in federal prison today. The sentence, handed down by U.S. District Judge Kelley Brisbon Hodge, comes after Coleman pleaded guilty to four counts of wire fraud related to a brazen $72 million scheme to defraud two lenders. He’ll also face three years of supervised release and a staggering $57,239,616.90 in restitution – a bill that will likely haunt him long after he’s released.

The scheme, detailed in court filings, reveals Coleman systematically deceived Lender #1 and Lender #2, convincing them to front him $72 million under the pretense of purchasing insurance companies. But the insurance acquisitions were largely a smokescreen. While approximately $10.9 million *did* go towards buying insurance companies, a whopping $61 million vanished into a black hole of personal expenses, existing business debts, and other companies under Coleman’s control. It wasn’t investment; it was a straight-up heist.

The grift began to unravel when investigators discovered Coleman used $20.2 million from Lender #1 almost immediately to pay off former investment advisor clients he’d previously swindled. Back in 2020, he’d admitted to misappropriating their funds and promised to repay them – using the new loan proceeds, of course. It was a Ponzi scheme dressed up as legitimate business, with the initial lenders unknowingly footing the bill for Coleman’s earlier crimes. By 2021, desperate to cover his tracks and repay mounting debts, he turned to Lender #2.

Coleman’s deception didn’t stop at misrepresenting how the funds would be used. He actively falsified documents, including forging signatures, to secure a $47.6 million loan from Lender #2. He claimed existing liens had been terminated – they hadn’t. The loan was approved based on these lies, and Coleman promptly diverted another $36.8 million, using $11.5 million of Lender #2’s money to *repay* Lender #1. A circular flow of stolen funds, all designed to keep the scheme afloat just a little longer.

“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.” The FBI’s Philadelphia Field Office, led by Special Agent in Charge Wayne A. Jacobs, echoed Metcalf’s sentiment, emphasizing their commitment to holding accountable those who profit from deceit. The Federal Housing Finance Agency Office of Inspector General and the Securities and Exchange Commission (SEC) also contributed to the investigation, with the SEC pursuing separate civil charges against Coleman.

Assistant U.S. Attorneys Anita Eve and Francis Weber prosecuted the case, bringing Coleman’s elaborate fraud to a close. This case serves as a stark reminder that even the most complex financial schemes will eventually be exposed, and those who engage in such behavior will face the full force of the law. Coleman’s taste for the high life, fueled by stolen money, has earned him a lengthy stay in a federal prison cell.

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