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Connecticut man gets 4 years in prison for investment scam

September 1, 2021 GMT

NEW YORK (AP) — A Connecticut man was sentenced Wednesday to four years in prison for cheating investors of over $25 million through a securities fund he co-founded.

Jason Rhodes was sentenced in Manhattan federal court by Judge Sidney H. Stein, who also ordered him to pay $25 million in restitution and forfeiture.

Prosecutors say Rhodes cheated more than 25 investors by lying to them as he spent their money on personal expenses, including a resort stay in Dubai and a luxury time-share vacation club, or by making payouts to other investors in Ponzi-style fashion.

U.S. Attorney Audrey Strauss said in a release that the fraud was made worse because Rhodes served at the time as the chief risk officer of Sentinel Growth Fund Management LLC.

Through his lawyer, Rhodes had requested a sentence of one year of home confinement.

Rhodes, 48, of Rowayton, Connecticut, had pleaded guilty last year to conspiracy as well as securities, wire and investment adviser fraud charges for a scam that ran from 2013 to 2016.