A Manitowoc man has been sentenced to 84 months in federal prison for his role in a $3,100,000 Ponzi scheme that targeted elderly victims.
According to the U.S. Attorney’s Office for the Eastern District of Wisconsin, James A. Nickels, 68, of Manitowoc, was sentenced on May 29, 2019, for carrying out the scheme that defrauded 37 victims, most of whom were elderly.
Nickels pleaded guilty to one count of wire fraud in violation of 18 U.S.C. § 1343, and one count of money laundering in violation of 18 U.S.C. § 1957.
The information presented at the sentencing hearing showed that Nickels was a prominent member of the Manitowoc community for many years, and used that status to solicit family, friends, and neighbors, many of whom were elderly, to ‘invest’ in his business, which was largely a Ponzi scheme.
Twelve persons who had lost money, or whose deceased family members had lost money due to the fraud, gave in-person statements at the sentencing, explaining the financial and emotional harm and sense of betrayal that the defendant’s actions caused them.
In pronouncing sentence, Chief United States District Court Judge William C. Griesbach described the defendant’s actions as ‘a scam’ whose victims were vulnerable. He stated that the defendant had committed an ‘evil, horrible’ crime that was ‘grotesque’ and had ‘high impact.’
Nickels was sentenced to 84 months in federal prison for his role in the $3,100,000 Ponzi scheme that targeted elderly victims in Manitowoc, Wisconsin.
‘As a society, we have an obligation to protect our older members from predators,’ said U.S. Attorney Matthew D. Krueger. ‘This seven-year sentence sends a clear message that taking advantage of elderly persons will be met with severe punishment.’
The case was investigated by IRS Criminal Investigation and the Wisconsin Department of Financial Institutions.
Assistant U.S. Attorneys Zachary J. Corey and Stephen A. Ingraham prosecuted the case.
Key Facts
- State: Wisconsin
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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