40 Year Sentence For Franklin Co. Ponzi Scheme Partner

By Mike Perleberg (Brookville, Ind.) - Jerry Smith, the Brookville man who was a partner in a multi-million dollar tri-state Ponzi scheme, is getting more prison time. Smith and his business partner, Jasen Snelling, of Cincinnati, scammed 72 investors from Indiana, Ohio, and Kentucky out of about $8.9 million dollars dating back to 2004. Some of those victims were Smith’s family and friends in Franklin County. Smith, 51, was sentenced to 65 months in federal prison and ordered to pay $5.4 million in restitution to victims in March of 2013. He has pleaded guilty to multiple federal charges of Conspiracy to Commit Wire Fraud, Obstruction of Justice and Tax Evasion in U.S. District Court for Southern Ohio. The federal conviction did not stop a local case in Franklin County from moving forward. Smith unsuccessfully appealed to the Indiana Supreme Court to have local charges in Franklin County dismissed after his federal conviction. His attorney had argued that not dismissing the state charges would constitute double jeopardy. With the state supreme court upholding the State Court of Appeals’ ruling in favor of the state in May, Smith decided to make a plea. In November, Smith pleaded guilty to five Class C felonies for the sale of unregistered securities in Franklin County court. On Thursday, Smith was in court in Brookville where a judge ordered him to serve 20 years in prison and 20 years on probation – time that will be served concurrently with his federal sentence. Smith also has to pay another $410,189 in restitution to Franklin County victims of his Ponzi scheme. “Smith’s actions were deplorable and I’m pleased we were able to add additional jail time to his sentence,” said Indiana Secretary of State Connie Lawson. “He took advantage of people who knew and trusted him. Plus, he never registered his products as required by law. This combination is typical of what we see in so many Ponzi schemes. I encourage all investors to protect themselves by checking with my office before investing, even if you know the person.” Indiana Securities Commissioner Carol Mihalik thanked Franklin County Prosecutor Mel Wilhelm for his work on the case. “Our offices have been collaborating on this case for almost five years now. Thanks to the continued cooperation between state and local officials, we have been able to hold Smith accountable for his actions and maximize his sentence,” Mihalik said. In Snelling’s federal case, the 50-year-old was ordered in 2012 to serve 131 months in prison, pay $5.3 million in restitution to the victims, and pay $596,000 in taxes to the IRS. RELATED STORIES: Franklin Co. Ponzi Scheme Partner Pleads To Local Charges Ind. Supreme Court Denies Appeal Of Ponzi Scheme Case Scammer Sentenced To Prison, Must Pay Back Tri-State Ponzi Schemer Gets 131 Mos. In Prison Another Guilty Plea In Tri-State Ponzi Scheme Securities Scammer Getting 8 Yrs In Dearborn Co. Ponzi Scheme Duo Pleading Guilty Half Of Alleged Ponzi Scheme Duo Pleads Guilty Convicted Ponzi Schemer Gets 40 More Years Investment Scammers Could Plea