A 44-year veteran of the financial services industry is heading to prison for 13 years for cheating investors in a Ponzi scheme, according to news reports.
Hector May, who was the president of Executive Compensation Planners in New City, N.Y., ran the scheme for more than two decades, costing investors more than $11.4 million, Geoffrey Berman, the United States Attorney for the Southern District of New York, says in a statement cited by Patch.com.
"His conduct was marked by extreme cunning, ruthlessness, and utter disregard for the well-being of his victims, including aging couples, close friends, relatives, and an employment pension plan,” Berman says, according to the web publication.
May was registered with a broker-dealer identified as “Broker Dealer-1,” Patch.com writes.
May had told several clients they should have his company, Executive Compensation Planners, buy bonds on their behalf instead of the broker-dealer in order to purportedly save on transaction fees, Patch.com writes.
May and his daughter, Vania May Bell, then allegedly spent the received funds on personal expenses and to pay back other investors, according to the web publication. May also allegedly sent out bogus consolidated account statements, according to the prosecutors, Patch.com writes.
May, 78, was also ordered to three years of supervised release, and to forfeit more than $11.4 million and pay more than $8 million in restitution, according to the web publication.
Last week, authorities also indicted May’s daughter, who was comptroller of ECP, Patch.com writes. She is charged with one count each of wire fraud and conspiracy to commit wire fraud, each carrying a sentence of up to 20 years, according to the web publication.