Glen Galemmo to be sentenced for Ponzi scheme - Cleveland 19 News Cleveland, OH

Sentencing hearing to continue in massive Ponzi scheme

Glen Galemmo, the man behind one of the largest Ponzi schemes in Ohio history, will be sentenced Wednesday in federal court. (FOX19 file photo). Glen Galemmo, the man behind one of the largest Ponzi schemes in Ohio history, will be sentenced Wednesday in federal court. (FOX19 file photo).
Galemmo appeared in federal court at 9 a.m., an hour earlier than expected, regarding a forfeiture situation. (FOX19 photo) Galemmo appeared in federal court at 9 a.m., an hour earlier than expected, regarding a forfeiture situation. (FOX19 photo)
CINCINNATI, OH (FOX19) -

A dozen former investors in Queen City Investments made emotional pleas in a federal courtroom Wednesday and will continue Thursday.

Their stories will be taking under advisement in the sentencing of Glen Galemmo, the man behind what's been called one of the largest Ponzi schemes in Ohio history.

The former Cincinnati money manager appeared in federal court at 9 a.m., an hour earlier than expected, regarding a forfeiture situation. He will also be sentenced on money laundering and wire fraud charges. 

Galemmo pleaded guilty in January, admitting that he took millions of dollars from investors, but never invested it. According to court records, the amount was somewhere between $7 and $20 million, with as many as 200 victims.

And for the first time on Wednesday, a number of those victims shared publicly the impact their losses have had on their lives.

Former investor John Rush told U.S. District Judge Herman J. Weber there are two different Galemmos. He stated the first is the "Honorable Glen Galemmo," the man he considered a friend for nearly 15 years and invested with for 12. Rush also referred to what he calls the "Duplicitous Glen Galemmo," who he said deceived and defrauded more than 140 investors. 

"The domino effect of his actions is deep and wide," Rush told the court.

Kara Guckenberger, the former president of the Friends for School for Creative and Performing Arts Fund, told the court that the fund which has existed since 1973 will be dissolved later this month.

The fund's board unanimously voted to use Glen Galemmo as the investor for endowments and donations. Guckenberger said the fund lost everything by trusting Galemmo.

She has spent the past year trying to fund raise, but said former donors have told her, "We can't trust you. You've lost your integrity and credibility." 

Guckenberger said 1,500 local children depend on Friends for SCPA to fund lessons in the arts.

[Related: FOX19 Investigates: Man at center of massive Ponzi scheme admits guilt]

Officials said the financial crimes began in 2008 when Galemmo took in more than $100 million dollars of investors money. In 2013, the IRS seized control of Galemmo's business, Queen City Investments.

[Related: EXCLUSIVE: Glen Galemmo at center of alleged Ponzi scheme speaks out]

Just last week Galemmo asked for a shorter prison sentence for his crimes. Court records show Galemmo's attorneys believe a 6 year sentence would be sufficient, but not excessive. U.S. attorneys have asked for a much steeper sentence, 188 months.

Weber will make his ruling on sentence length, restitution and forfeiture of assets. That sentence is expected to be handed down Thursday.

FOX19 NOW will be in court again Thursday and keep you posted on any developments.

Copyright 2014 WXIX. All rights reserved.

  • Seen on 19Seen on 19More>>

  • Data breach: Medical Mutual employee sends private information for thousands to wrong email

    Data breach: Medical Mutual employee sends private information for thousands to wrong email

    Wednesday, September 20 2017 1:51 PM EDT2017-09-20 17:51:50 GMT
    Medical Mutual of Ohio headquarters in downtown Cleveland (Source: Facebook)Medical Mutual of Ohio headquarters in downtown Cleveland (Source: Facebook)

    Medical Mutual of Ohio has confirmed that an employee sent 45 emails to the wrong person containing personal information for more than 6,000 of its Medicare Advantage customers.  According to a spokesperson for Med Mutual, based in Cleveland, this was an accident because the employee typed in an incorrect email address and the data was going to a third party that didn't have authorization to be looking at private information.  

    More >>

    Medical Mutual of Ohio has confirmed that an employee sent 45 emails to the wrong person containing personal information for more than 6,000 of its Medicare Advantage customers.  According to a spokesperson for Med Mutual, based in Cleveland, this was an accident because the employee typed in an incorrect email address and the data was going to a third party that didn't have authorization to be looking at private information.  

    More >>
  • Man creates 'dad bod' fanny pack

    Man creates 'dad bod' fanny pack

    Tuesday, September 19 2017 6:05 PM EDT2017-09-19 22:05:29 GMT
    Source: thedadbag.comSource: thedadbag.com

    Albert Pukies created the Dadbag, which is a fanny pack with a man's stomach printed on it.

    More >>

    Albert Pukies created the Dadbag, which is a fanny pack with a man's stomach printed on it.

    More >>
  • Should you download the new Apple iOS 11?

    Should you download the new Apple iOS 11?

    Tuesday, September 19 2017 4:50 PM EDT2017-09-19 20:50:33 GMT
    New iOS 11 update. (Source: CNET)New iOS 11 update. (Source: CNET)

    As is usually the case, a week after Apple announced its latest iPhones it is now launching its newest operating system, iOS 11.

    More >>

    As is usually the case, a week after Apple announced its latest iPhones it is now launching its newest operating system, iOS 11.

    More >>
Powered by Frankly