A former investment advisor in Virginia is heading to prison for 13 years for his alleged role in running a $6.6 million Ponzi scheme, according to news reports.
Edward Lee Moody Jr. admitted to taking the money he obtained through his firm CM Capital Management LLC to pay for $885,000-worth of investments for himself and to pay for a house, shopping and travel, according to FA magazine.
He also paid around $1.8 million from new investors to earlier ones and served them with fraudulent account statements to cover his tracks, the publication writes.
Moody’s victims included 53 investors, some of whom were elderly clients who had taken out their retirement savings to hand over to the former advisor, as well as the the Abiding Presence of God Church of Pennsylvania, according to court documents cited by FA magazine.
He originally faced up to 20 years in prison when he pled guilty to mail fraud as well as engaging in monetary gain from criminally-deprived property, the publication writes.
As part of the sentence, U.S. District Judge Robert Doumar also ordered Moody to forfeit his home in North Chesterfield, Va., a Porsche and around $1.5 million that was seized by authorities, as well as to pay full restitution to his victims, according to FA magazine.