An Allentown, Pennsylvania, attorney pleaded guilty today
for his role in a $2.7 million investment fraud scheme that victimized his law
clients.
Assistant Attorney General Brian A. Benczkowski of the
Justice Department’s Criminal Division, U.S. Attorney William M. McSwain of the
Eastern District of Pennsylvania and Special Agent in Charge Michael J.
Driscoll of the FBI’s Philadelphia Field Office made the announcement.
Todd H. Lahr, 60, of Nazareth, Pennsylvania, pleaded guilty
before U.S. District Judge Edward G. Smith of the Eastern District of
Pennsylvania to one count of conspiracy to commit securities fraud and wire
fraud, two counts of securities fraud and four counts of wire fraud. Sentencing is scheduled for Aug. 3, 2020
before Judge Smith.
According to Lahr’s admissions at the plea hearing, from
2012 through 2019, Lahr conspired with others to perpetrate a securities fraud
scheme targeting his own law clients, which involved the fraudulent sale of the
securities of two entities, THL Holdings LLC and Ferran Global Holdings
Inc. Lahr used investor funds to finance
his own lifestyle, paying his home mortgage, his child’s school tuition,
utility bills and other personal debts.
He perpetuated the scheme by using money that he received from new
investors to pay money owed to other investors in the scheme. Total investor losses are estimated to be
over $2.7 million, Lahr admitted at the plea hearing.
The FBI investigated this case. Trial Attorney Philip Trout of the Criminal
Division’s Fraud Section and Assistant U.S. Attorney Michael J. Rinaldi of the
Eastern District of Pennsylvania are prosecuting the case.
The department appreciates the substantial assistance
provided by the U.S. Securities and Exchange Commission.
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