Georgia Man Gets 5 Years For $20M Investment Fraud Scheme
Franklin B. Trell, of Atlanta, has been sentenced to five years in prison after he pled guilty to orchestrating a $20 million investment fraud scheme.
Trell pled guilty to one count of conspiracy for using corporate entities to solicit loans and investments. In addition to five years in prison, he was sentenced to three years of supervised release and restitution of more than $20 million.
Trell Misled Investors with Investment Fraud Scheme
Federal prosecutors said that Trell and a co-conspirator, Cynthia P. Vinson, created medical software and medical imaging companies with an unnamed partner with the agreement that they would both provide capital for the businesses.
Instead, Trell and Vinson misled KeyBank and the investor, who gave around $20 million, making false statements about the businesses with the intention of getting money for personal use.
According to filings, Trell and Vinson made more than $9 million from the investment fraud scheme. The pair used some of the money for personal use, including $1.7 million to settle past lawsuits over alleged fraud.
Co-Conspirator Yet to Be Sentenced
Cynthia P. Vinson is set to be sentenced in Georgia federal court in March 2018. Vinson was indicted with Trell in March 2016 for conspiracy, wire fraud, bank fraud, and money laundering. She pled guilty to one count of conspiracy.
According to prosecutors, Vinson and Trell had worked together on other ventures, including a prior medical software and imaging company. Vinson was hired as a business manager to help with bookkeeping.
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