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United States Attorney's Office District of Connecticut |
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February 29, 2008 |
FORMER WATERBURY MAN ADMITS RUNNING INVESTMENT SCHEMEKevin J. O’Connor, United States Attorney for the District of Connecticut, announced that KARL RAMONAS, 42, of Fort Lauderdale, Florida, formerly of Waterbury, pleaded guilty on Wednesday, February 27, before United States District Judge Stefan R. Underhill in Bridgeport to one count of mail fraud related to a fraudulent investment scheme that he operated. According to documents filed with the Court and statements made in court, between January 2001 and January 2002, RAMONAS executed a fraudulent scheme to induce individuals to give him money by falsely representing that he would invest the money in an investment account on their behalf. As part of the scheme, RAMONAS did not invest substantial funds that were sent to him by investors as promised, but instead converted the funds to his own use and enrichment. In furtherance of the scheme, RAMONAS lulled investors into believing that their money had been and would be used as promised, by falsely representing to them the value of the investment account and the value of each investor’s per share interest in the investment account. For example, RAMONAS falsely represented to investors on January 31, 2001 that the investment account had increased in value when, in fact, more than 85 percent of the funds that were invested in the investment account had been lost. In addition, RAMONAS tricked investors into believing that their money had been and would be used as promised by returning some money to certain investors and falsely representing that it was a profit resulting from an increase in the value of the investment account. The returns to investors, however, were monies received from new and current investors, and were not profits resulting from an increase in the value of the investment account. Judge Underhill has scheduled sentencing for May 16, 2008, at which time RAMONAS faces a maximum term of imprisonment of 20 years. RAMONAS brought a bank check in the amount of $230,030 to court on the day of his guilty plea in order to pay full restitution to the victims of his crime. This case was investigated by the
United States Postal Inspection Service and the Federal Bureau of
Investigation, with assistance provided by the State of Connecticut
Department of Banking. The case is being prosecuted by Assistant
United States Attorney Geoffrey M. Stone. CONTACT: U.S. ATTORNEY'S OFFICE |