Father and son get prison sentences for bilking investors
August 22, 2003 at 2:20 PM EST - Updated June 23 at 11:56 AM
CLEVELAND (AP) - A father and son who cheated investors out of more than $2.8 million were sentenced to prison terms Tuesday.
Emidio and Anthony Dellarciprete's Barberton-based International Monetary Group told clients they could reap huge dividends in foreign-currency options.
In most cases, the money was not invested but used by the Dellarcipretes for personal purposes and to pay the expenses of carrying out the conspiracy, said Assistant U.S. Attorney John Siegel.
Anthony Dellarciprete, 31, pleaded guilty to conspiracy and one count each of wire fraud and mail fraud and received four years and two months in prison.
His father, Emidio, 54, pleaded guilty to conspiracy and wire fraud and was sentenced to one year and nine months in prison.
U.S. District Judge Paul R. Matia also ordered them to pay restitution of $2.2 million to their clients -- the remaining portion of their losses.
The Dellarcipretes solicited clients through cold calls to send money to International Monetary Group for investments in foreign-currency options, which allow investors to speculate on the price movement of foreign currency relative to the U.S. dollar.
Of about 80 investors, two made less than $800 each, one broke even, and the rest lost most or all their money, Siegel said.
From 1999 to 2001, the business received $3.4 million from investors and paid $535,000 back to clients as purported proceeds of their investments.
The scheme ended in 2001, when the U.S. Commodity Futures Trading Commission sued the business in federal court.
(Copyright 2004 by The Associated Press. All Rights Reserved.)