BUFFALO, NY - A former Georgetown Capital Group investor has been sentenced in a Ponzi scheme dating back to 1990.
Timothy Geidel, 48, of Hamburg, pleaded guilty to wire fraud and structuring for defrauding more than 40 investors out of $1.3 million.
While working with Georgetown Capital, Geidel diverted investor funds to his own use. Between 1990 and 2010, Geidel told investors he would use their money in high-yield stocks, bonds, mutual funds and certificates of deposits. Instead, Geidel deposited the money in his personal accounts. He also used the funds to pay off earlier investors to perpetuate the scheme.
Chief U.S. District Judge William Skretny sentenced Geidel to 3-1/2 years in prison and restitution of the $1.3 million.