A closed outlet of the financial institute Amber Gold in Warsaw, Poland, Monday, Aug. 27, 2012, after the organization was liquidated and has emerged as an unsustainable pyramid scheme. Amber Gold promised guaranteed returns of between 10 to 14 percent annually for what it claimed were investments in gold and for many of its clients who grew up under communism the prospects of high returns on investments was too much to resist. Now officials say it operated like a pyramid scheme, and thousands of its clients are facing the prospect of never seeing their money again.(AP Photo/Czarek Sokolowski)
NJ man sentenced for $1.2M investment fraud
Published: 12:18:14 PM, Mon 18 March 2013 UTC
TRENTON, N.J. (AP) — Federal prosecutors say a central New Jersey man who defrauded 16 people out of $1.2 million has been sentenced to nearly six years in prison.
Brian McCahery of Bradley Beach will also have to serve three years of supervised release once he's freed and pay restitution to his victims, amounts that officials say will likely range from $15,000 to $323,500.
Prosecutors say the 45-year-old McCahery used the name of a day-trading company where he worked to lure investors, promising them that their money would be put in short-term equity funds and initial public offerings that would provide a high rate of return.
But instead of investing the funds, prosecutors say he used the money for personal expenses or as payments to convince victims to continue with their investments.
Tags:
ap, finance, victims, new jersey, monmouth county, new jersey, prosecutors, business, central new jersey, investment, money, federal prosecutors, personal expenses, trenton, rate of return, equity, initial public offering, initial public offerings, supervised release, high rate, nj man, investment fraud, bradley beach, short-term equity funds, day-trading company, pay restitution, brian mccahery, 45-year-old mccahery
