Frederick V. McMenimen, III, Mail Fraud, New Hampshire 2024

A former New Hampshire financial consultant has pleaded guilty to a $1.3 million fraud scheme, admitting he defrauded elderly widows out of their life savings.

Frederick V. McMenimen, III, 53, of Bow, pleaded guilty in United States District Court for the District of New Hampshire to one count of mail fraud, one count of money laundering and three counts of federal income tax evasion, announced United States Attorney John P. Kacavas.

Between approximately September 2008 and October 2011, McMenimen fraudulently solicited more than $1 million in purported investments from some of his financial advisory clients, mostly elderly widows with long-standing personal relationships with McMenimen’s family.

McMenimen advised the clients to liquidate existing annuities or other investments, deposit the proceeds in their checking accounts, and then write checks payable to APSB, a shorthand reference to a defunct retail sporting goods business, PSB Sports LLC, that McMenimen had once owned and operated.

McMenimen deposited the checks into a bank account he maintained in the name of PSB and then used those funds to purchase official bank checks, which he directly or indirectly deposited into a checking account maintained in a relative’s name at an FDIC-insured financial institution.

Despite expending all of the proceeds on personal expenses, McMenimen did not record any of the fraudulently obtained funds as income on the tax returns he filed for tax years 2008, 2009, and 2010, resulting in a substantially lower tax liability.

McMenimen is scheduled to be sentenced on February 11, 2015.

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