A Ponzi Scheme of $2.7 Million Unleashed
According to the U.S Department of Justice, a former attorney from Allentown was sentenced to six years in prison for playing a part in a Ponzi scheme of $2.7 million by victimizing his clients in an investment fraud scheme.
Todd Lahr, 60 years older attorney with an office in Allentown was caught by prosecutors in March while he was persuading clients to invest in the non-existent business opportunities.
Lahr pleaded guilty to both security fraud and wire fraud and this resulted in disbarring him. From 212-2019, Lahr also plotted to sell securities of THL Holdings LLC and Ferran Global Holdings Inc. First THL Holdings investments were sold by Lahr while made false promises that the money profited would be used for certain business opportunities that include mining operations and also obtaining shares of a penny stock. However, in reality, the money was spent by Lahr for his personal expenses, and payment to prior investors was made as well.
When Lahr finally realized that he has run out of funds to pay the THL holdings investors, he approached investors for another organization Ferran. He also misinformed the investors that profits from Ferran would be used for some global business opportunities that also included the mining operations in New Guinea and some property lease business in Spain and England.
Again Lahr used the money from this investment for his personal use and the previous investors of THL holdings. His personal expenses included his mortgage and his children’s tuition, bills, and debts. The investors lost a total of $2.7 million. Lahr immediately lied in his sworn testimony and denied all charges before U.S Securities and Exchange Commission. As a part of his punishment, Lahr is also asked to pay $2.1 million and also forfeit $273,000.