Tri-State Ponzi Schemer Gets 131 Mos. In Prison

(Cincinnati, Oh.) – A Cincinnati man who helped run a multi-million dollar Ponzi scheme will do time in jail and must pay back money to the investors he duped.

Jasen Snelling, 48, had partnered with Brookville resident Jerry Smith, 50, in running two investment companies named CityFund and Dunhill Investments. Together they scammed 72 people in Indiana, Ohio and Kentucky out of $9 million from 2003 through 2011. Prosecutors said most of the investors funds were never invested in anything, other than Smith and Snelling’s “exorbitant personal expenses and lifestyles.”

One of the victims, a close friend of Snelling, lost more than $1.3 million in the Ponzi scheme.

Last June, Snelling pleaded guilty in U.S. District Court of Southern Ohio to wire fraud, tax evasion, and obstruction of justice – three of the four counts he faced. On Tuesday, a judge sentenced Snelling to 131 months in prison.

In addition, Snelling must pay $5.3 million in restitution to the victims and over $596,000 to the IRS.

As part of the plea agreement, Snelling also agreed to forfeit all property he illegally obtained with investor funds, including a boat and his interest in a Michigan vacation property.

Snelling is already serving an eight year sentence with the Indiana Department of Corrections for the same scheme following a conviction in the State of Indiana. He is awaiting further sentencing in Franklin County court.

Smith, who has also pleaded guilty to similar charges in federal court, is scheduled to be sentenced on January 17, 2013. He is currently free on bond.

LINKS:

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