Robert Stinson Jr. has been arrested on allegations that he defrauded 260 investors of $17 million in a Philadelphia Ponzi scheme that was halted in June by the Securities and Exchange Commission.
Stinson, 55, was arrested this morning, the U.S. Attorney’s office in Philadelphia said.
In a 21-count grand jury indictment, unsealed today, prosecutors alleged that Stinson’s Philadelphia company, Life’s Good Inc., promised 16 percent returns by investing in real estate, but in reality used investors’ money for Stinson and his family, and paid off earlier participants to perpetuate the scheme.
Stinson faces a maximum possible prison sentence of 329 years for charges including five counts of wire fraud, four counts of mail fraud, and nine counts of money laundering, the U.S. attorney said.