Money Manager Gets Stiff Sentence in Ohio Fraud Case

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CINCINNATI -- A southwest Ohio money manager accused of bilking 141 investors in a Ponzi scheme has been sentenced to 15 years in prison and ordered to pay $34.5 million in restitution.

U.S. District Judge Herman Weber said he wanted to send a "loud, emphatic message" to fraudsters with the sentence of Glen Galemmo on Thursday. The Cincinnati Enquirer reports that Galemmo sat silently with his five children and wife watching. He and his attorney had urged a sentence of six years.

Prosecutors said he used new investors' money to pay earlier investors, and fabricated glowing monthly reports about his Queen City Investments. He pleaded guilty in January to wire fraud and money laundering counts.

For the first time Thursday, he apologized to investors.

"A day does not go by when I don't think about the investors, family members and others who have been directly affected by my conduct," Galemmo said. "I know that all this pain and suffering has been caused solely by me."

He still faces multiple civil lawsuits seeking to regain investors' money. Bank accounts totaling $1.5 million were seized, along with five vehicles and property. Weber said Galemmo will be expected to continue paying back investors after his release.

Investor Gary Frey said he thought the sentence was fair, but not satisfactory.

"It's still only 31 days per investor," said Frey, of New Trenton, Indiana. He said he and his wife lost some $200,000 from their savings from some 80 years of work between them.

"In his speech, he said he was sorry six times, but I think he was just sorry that he got caught," Frey said.


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fakeconomics01

"""Mr. Galemmo sat silently with his five children and wife watching. He and his attorney had urged a sentence of six years.""""

Mr. Galemmo, his children and wife will not suffer as much as his 141 victims, their children and spouses. I wished it was a Life Sentence without a chance for parole

August 29 2014 at 4:43 PM Report abuse +1 rate up rate down Reply
natezim

The only reason this POS feels sorry for the investors is that he was caught!! He should get additional prison time for the other outstanding charges.

August 29 2014 at 3:28 PM Report abuse +2 rate up rate down Reply
socioeconomist1

$100 says this guy abandons his American citizenship and moves to the Cayman Islands after he gets out of prison... and will work real hard to pay back investors as he lives off of their money.

August 29 2014 at 3:15 PM Report abuse +1 rate up rate down Reply
socioeconomist1

ok, where is all the people who mocked me when I said learn how to invest for yourself and don't hand over your money to a fund manager ?

August 29 2014 at 3:10 PM Report abuse rate up rate down Reply
elendil3136

His clients will be lucky to get ten cents on the dollar of what they were cheated out of by this crook. The sentence was way too light. If he lives to spend a single day free after his time in prison, it will be a travesty of justice.

If you steal a car worth $500, you get five years in jail. Steal $34 million, and you get only fifteen? There's something wrong here.

Plus, we all know that he will be sent to a minimum security "club Fed". He should have to spend at least his first five years in a maximum security prison with "Bubba" for a cellmate.

August 29 2014 at 12:04 PM Report abuse -1 rate up rate down Reply
2 replies to elendil3136's comment
Robert Smith

Capitol hill robs taxpayers everyday and and they go scott free.

August 29 2014 at 12:10 PM Report abuse +2 rate up rate down Reply
1 reply to Robert Smith's comment
fakeconomics01

Shame on you for speaking the truth!! Are you taking your meds?

August 29 2014 at 4:46 PM Report abuse +1 rate up rate down
socioeconomist1

The always get light sentences because the consumer made the choice to give him the money... He didn't take it by force or theft. So in the courts eyes, the victims share some of the responsibility because they were idiots that didn't live life like men and take care of their own investments.

August 29 2014 at 3:13 PM Report abuse -2 rate up rate down Reply
1 reply to socioeconomist1's comment
mg1polo

WOW! Are you out to lunch or just plain ignorant?

August 29 2014 at 4:17 PM Report abuse +1 rate up rate down