ALEXANDRIA, Va. (AP) — A Pennsylvania man has pleaded guilty to running was prosecutors say was a Ponzi scheme involving nonexistent wholesale jewelry transactions.
Thirty-four-year-old Matthew James Addy of Lancaster, Pa., pleaded guilty to securities fraud charges on Friday in federal court. He faces a maximum of 20 years in prison at sentencing May 10.
According to court records, Addy owned Edward J. & Co., which operated a retail jewelry store in Lancaster. Prosecutors say Addy recruited people throughout the U.S. and Europe to invest in promissory notes purportedly linked to transactions involving wholesale jewelry and loose precious stones.
Authorities say Addy, who obtained more than $3 million from investors, never conducted any of the transactions. Prosecutors say Addy paid some investors with funds contributed by newer investors.
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