Man Gets 8.5 Years For $17M Ponzi Scheme

Richard Elkinson persuaded investors by telling them he was using their money to finance the manufacture of uniforms for purchase by government agencies.

Nov 29th, 2011

BOSTON (AP) — A Framingham man has been sentenced to 8 ½ years in federal prison for operating a Ponzi scheme that prosecutors say cheated more than 200 investors out of $17 million.

Richard Elkinson was also sentenced Monday in U.S. District Court to three years of probation and ordered pay $17 million in restitution. He pleaded guilty in April to 18 counts of mail fraud.

Prosecutors say the 78-year-old Elkinson persuaded investors by telling them he was using their money to finance the manufacture of uniforms for purchase by government agencies. He paid back the initial investors with money obtained from subsequent investors, using some money for personal purposes.

Elkinson had no uniform business and no government contracts.

Authorities say he handed out millions in promissory notes.

Elkinson apologized in court.

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