Ponzi Schemer Galemmo Gets More Than 15 Years

Aug 29 2014 | 7:25am ET

Hedge-fund fraudster Glen Galemmo was sentenced to more than 15 years in prison for ripping off more than 100 investors of $34 million.

Galemmo, who pleaded guilty in January, offered his first apology for the scam, telling his victims that he was “sorry for my silence over the past year. The answers you needed and deserved to have I was not able to give you.”

He didn’t offer much more than that, saying simply, “I went to work every day foolishly thinking I could fix it.”

Galemmo ran a Ponzi scheme at his Cincinnati-based Queen City Investments, which collapsed last year. Despite losses, Galemmo claimed to have returned 432% from 2006 through 2011—without a losing year during the stretch. The fraud went on for at least seven years, prosecutors say, with victims sent bogus reports describing investments that didn’t exist.

Galemmo remains free until he must report to prison. He was also ordered to pay $34.5 million in restitution, agreeing to give up his stake in several pieces of property, five vehicles and bank accounts worth $1.5 million.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of