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Man accused of bilking investors denied early prison release

May 30, 2021 GMT

CONCORD, N.H. (AP) — The head of a failed New Hampshire mortgage firm who bilked investors out of tens of millions of dollars has once again been denied a chance at early release.

Scott Farah, who’s served about two-thirds of a 15-year federal prison sentence, was denied a request for compassionate release last week by a federal judge. Farah cited his deteriorating mental health related to a previous unsuccessful plan for release, his age and weight, and the declining health of his aging father.

Farah, 57, anticipated being released last summer, but the federal Bureau of Prisons determined he was medically ineligible because his condition did not place him at an increased risk for adverse outcomes from COVID-19. The state argued against an early release, and a judge agreed.

Farah headed the now-defunct Financial Resources Mortgage. Farah pleaded guilty to mail and wire fraud in 2011 and admitted pooling investor funds to pay off other loans, investors and personal expenses. Authorities called it a Ponzi scheme, saying he defrauded people of about $33 million.