Thomas D. Renison, Ponzi and Tax Fraud, Massachusetts 2021

Multi-Million Dollar Ponzi Scheme Exposed: Thomas D. Renison Pleads Guilty

BOSTON, MA - In a shocking turn of events, Thomas D. Renison, a 66-year-old man from Connecticut, has pleaded guilty to participating in a multi-year Ponzi and tax fraud scheme that left investors reeling with losses of over $4 million.

According to the charging document, Renison and his co-conspirator, Timothy J. Allcott, engaged in a brazen scheme to raise and solicit funds from victims to invest in ARO Equity LLC, a privately-held investment company. However, instead of investing the funds as promised, the duo used the money for their own exorbitant commission fees, to satisfy monthly interest obligations to other investors, and to invest in different undisclosed businesses.

The scheme, which lasted from 2015 to 2018, saw ARO take in over $5 million from investors, but only about half of the funds were actually invested. The majority of the investments yielded significant losses, but the victims were kept in the dark, with Renison and Allcott assuring them that their investments were performing well and remained safe.

The defendants' scheme also involved misrepresentations to the victims regarding how their investments would be used. Victims were told that their investments would be used to fund investments in one of three different businesses, but in reality, the funds were often used for purposes other than what was represented.

As part of the scheme, Allcott and Renison disguised commissions paid to Renison as loans to Renison's wife, allowing them to conceal Renison's ownership stake in the company. Renison also failed to declare over half a million dollars of commission income and failed to pay over $150,000 in taxes.

Renison pleaded guilty to one count of conspiracy to commit wire fraud and two counts of filing false tax returns. U.S. District Judge George A. O'Toole, Jr. has scheduled sentencing for February 11, 2021.

Assistant U.S. Attorney Jordi de Llano is prosecuting the case, with the support of the Federal Bureau of Investigation and the Internal Revenue Service's Criminal Investigations division.

In a related case, Timothy J. Allcott previously pleaded guilty to one count of conspiracy to commit wire fraud, and the Securities and Exchange Commission charged both Renison and Allcott with fraudulently misleading investors in connection with the same conduct.

Source: https://www.justice.gov/usao-ma/pr/connecticut-man-pleads-guilty-ponzi-and-tax-fraud-scheme