Stanley W. Anderson, a 70-year-old resident of Arvada, Colorado, was sentenced to 51 months in federal prison for his role in a $5 million Ponzi scheme, according to federal law enforcement authorities. Anderson was also ordered to spend three years on supervised release and pay $5,226,300 in restitution.
Anderson was indicted by a federal grand jury in Denver on March 22, 2012, along with co-defendants Pastor Charles Lawrence Kennedy, Jr. of Tampa, Florida, and Edwin Alexander Smith of Denver, Colorado. Kennedy and Smith had previously pled guilty and were sentenced to federal prison for twelve and thirty months, respectively.
According to the indictment and plea agreements, Anderson, Smith, and Kennedy devised a scheme to defraud investors, beginning in October 2005 and continuing through December 2008. The scheme involved soliciting investment funds for an investment program that promised significant profits through the trading of European medium term notes (MTN program), but in reality, the MTN program did not exist.
Anderson, as the chairman and chief executive officer of CFO-5, LLC and Trinity International Enterprises, Inc., was the lead person for the investment program and managed its daily operations. He made key decisions regarding the use of investor funds, handled investor communications, and oversaw the relationship with various promoters responsible for soliciting investors.
As part of the scheme, Anderson and his co-conspirators raised approximately $5 million from approximately 100 investors nationwide. However, the investors’ funds were not used to trade in financial instruments, but were instead misappropriated by Anderson, Smith, and Kennedy for unauthorized uses.
The case was investigated by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the United States Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Timothy Neff.
Anderson’s sentence brings an end to a complex case that involved a multi-million dollar Ponzi scheme. The scheme’s impact on the investors who lost their money is still being felt, and it serves as a reminder of the importance of due diligence and caution when investing in unregistered or unproven investment programs.
Related Federal Cases
- Stanley W. Anderson, Wire Fraud and Money Laundering, Colorado 2005 · Florida
- Pastor Charles Lawrence Kennedy, Jr., Wire Fraud, Colorado 2014 · Florida
- Jeremy Kee Anderson, Conspiracy to Commit Mail and Wire Fraud, Mail and Wire Fraud, Florida 2021 · Florida
- Julio Melendez, Wire Fraud and Identity Theft, Colorado 2020 · Florida
- Samer Jamil Rashid, Marijuana and Money Laundering Conspiracy, Florida 2016 · Florida
Key Facts
- State: Colorado
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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