Sunday, 24 July 2016
Last updated 1 day ago
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.