Arizona man sentenced to 15 years in prison for role in $20M investment scheme
PHOENIX — An Arizona man was sentenced on Tuesday to more than 15 years in federal prison for his role in a $20 million investment scheme, authorities said.
David Alcorn of Scottsdale, 78, along with Aghee William Smith II of California, 70, were charged with conspiracy to commit mail and wire fraud, and money laundering in connection to an investment scheme which ran from 2011-2017, IRS Criminal Investigation said in a press release.
Alcorn, Smith and other co-conspirators deceived hundreds of investors, mostly elderly, convincing them to invest in companies owned by the men.
Severely speculative investment vehicles were sold through material misrepresentations and were then occupied as vehicles for fraud.
The investors pulled out of 401(k)s or retirement funds without knowing the men were taking 20-70% of the money as fees.
Alcorn and others used the funds to continue paying for the enterprise, lavish lifestyles and to pay commissions to other salesmen, the release said.
Victims suffered over $20 million in losses as a result.
Another man involved in the case, Daryl Bank of Florida, 51, received the highest sentence of 35 years in prison.
Other people involved in the fraud scheme received sentences between five to 16 years.