Leonard Smith, Wire Fraud Conspiracy, Michigan 2024

A 56-year-old Michigan man has been sentenced to 30 months in prison for his role in a scheme that defrauded victims out of millions of dollars.

Leonard Smith, of Clawson, Michigan, was convicted of conspiracy to commit wire fraud and sentenced by U.S. District Judge Richard J. Arcara.

According to Assistant U.S. Attorney Douglas A. Penrose, Smith conspired with others to obtain money and property from investors between May 2010 and July 2015. As part of the scheme, Smith, who was a financial advisor, solicited investments from his clients at two companies—i2i Capital LLC and i2i Settlement Partners LLC.

The companies, which were formed by co-conspirators Christopher Dillon and Gilbert Lynagh, were incorporated in Delaware but listed a business address in Lancaster, NY. Smith and his co-conspirators caused 27 victims to invest over $5,000,000 in i2i Capital and/or i2i Settlement Partners.

False and fraudulent representations were made to victims regarding the nature of the investment and the associated risks, duration, and rates of return. Smith also misrepresented his compensation regarding the victims’ investments in the companies.

The majority of victim funds were utilized by Smith, Dillon, Lynagh, and other members of the conspiracy in a manner that was not authorized by the victims, including for personal use. None of the victims received the promised return on their investments, and none saw the return of their original investment funds as promised by Smith, Dillon, and Lynagh.

Gilbert Lynagh and Christopher Dillon were previously convicted for their roles in the conspiracy.

The sentencing is the result of an investigation by the Federal Bureau of Investigation, Buffalo Office, under the direction of Special Agent-in-Charge Stephen Belongia.

U.S. Attorney James P. Kennedy, Jr. announced the sentencing, which marks the culmination of a lengthy investigation into the scheme.

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