March 9, 2012, 6:45 PM

http://blogs.wsj.com/corruption-currents/2012/03/09/man-sentenced-to-33-years-in-prison-for-money-laundering/

A federal judge sentenced Philip Lochmiller Sr. on Friday to more than 33 years in prison for conspiracy, money laundering and mail fraud.

Lochmiller was also ordered to pay an $18.65 million restitution to the victims of his crime. He, along with his stepson and Shawnee Carver, ran an investment fund based on property investments that operated as a Ponzi scheme, paying existing investors with the money provided by new customers.

“Make no mistake: Today’s sentence, which amounts to a life sentence, demonstrates that those who rob with the pen and the computer cannot evade the painful consequences of their crimes,” said John Walsh, U.S. Attorney for the District of Colorado, in a statement.

According to evidence presented at the trial, the investment fund promised returns of 10% to 16%, and in some cases 18%, via local newspaper ads. Once the investor money came pouring in, the Lochmillers spent hundreds of thousands of dollars on personal expenses. They didn’t reveal to the investors that Lochmiller had a prior felony conviction and a bankruptcy, the Justice Department said.

Lochmiller’s stepson and Carver both pleaded guilty and testified in the trial. The stepson was sentenced to eight years in prison and ordered to forfeit $18.65 million in restitution for the victims; Carver received two years in prison and was ordered to pay a $2.5 million restitution.