Another Ponzi Scheme Swindler Jailed – Money Move To Grenada
January 6, 2010 Leave a comment
A 51-year-old man is set to spend the next 90 years of his life in jail for ripping off 125 elderly victims in a Ponzi scheme with links to the island of Grenada.
Jeffrey Gordon Butler was this week convicted of 693 felony counts in the fraud case involving more than US$11 million in investments and sentenced to 90 years. Prosecutors had argued that Butler sold more than 300 promissory notes or stocks without getting a license from the state in a Ponzi scheme fraud. He then moved the money without telling his investors to a telecommunications company located in Grenada.
In a Ponzi scheme, investors are offered high, short-term returns, but instead of generating legitimate profits, the money is kept or used to repay earlier investors. When the scheme ran out of money and he could not deliver on his promised pay outs, prosecutors claim that Butler then sent his victims a letter falsely claiming that Hurricane Ivan had delayed payments.
“Many of Jeffrey Butler’s victims had trouble believing that he was capable of stealing their life savings. He stole more than money from the people who trusted him. Jeffrey Butler also stole his victims’ dignity, independence, and dreams,” said Orange County District Attorney Tony Rackauckas.
Butler’s wife, Peggy, was convicted in June of 2009 of filing false tax returns. She was sentenced to one year in jail and seven years on probation. Prosecutors say the couple spent lavishly on themselves, living in an expensive home and taking many vacations.