Madison Financial Services founder Patrick O’Connor pleaded guilty on money laundering and wire fraud. He faces the threat of sentencing following his pleading. The case will come up for hearing on July 30. He is accused of the investment fraud scheme. He lured genuine investors, who became victims of his unfair play.
Patrick O’Connor makes losses
Mr. O’Connor is allegedly involved in a big-ticket investment fraud scheme wherein he duped investors. Western District of Wisconsin Attorney said people lost more than $9 million between 2011 and 2018. Patrick created Madison Financial Services and made several material misrepresentations about the firm. He promised lofty returns for the investments made by investors.
O’Connor promised investors that MFS would invest the funds via TradeStation brokerage account. The alleged fraudster promised an annual return of 24% for their investment. He could not keep the promise as he diverted the funds generated from investors. Also, he did not gain anything significant from the trading account.
Uses the money for personal use
Patrick used investor’s money for his own personal expenses. This included repaying other investors and developing his real estate business. There is no proof of gains or losses in the money he deposited in TradeStation accounts and traded. As if these were not enough, he came up with the reported statement of accounts for the investments. The fictitious statements showed profits on a year-on-year basis.
The fictitious accounts showed growth in portfolio balance. Mr. O’Connor may get 20 years of prison on the wire fraud charge. He also faces penalty 20 years of prison for money laundering charges. This would mean that there is little chance for O’Connor to escape from the prison sentence.
The no of frauds is on the rise. It’s time investors are cautious and don’t fall for anyone who promises easy returns.