Patrick Bennett, the accused mastermind of one of the biggest Ponzi schemes in U.S. history, was sentenced Friday to 30 years in prison.
Former Bennett Funding Executive
Receives 30-Year Prison Sentence
By COLLEEN DEBAISE
Dow Jones Newswires
NEW YORK -- Patrick Bennett, the accused mastermind of one of the
biggest Ponzi schemes in U.S. history, was sentenced Friday to 30 years in
prison.
Mr. Bennett was chief financial officer of the
family-owned Bennett Funding Group Inc., a
Syracuse, N.Y., firm that allegedly bilked
some 12,000 people out of $700 million.
U.S. District Judge John S. Martin postponed
sentencing several times to allow Mr. Bennett
and his wife, Gwen, more time to turn over
assets to a trustee for the investors. Last
month, the judge offered to sentence Mr.
Bennett to 20 years on the condition he turn
over additional assets, such as the sprawling
upstate New York horse farm registered in his
wife's name.
But Judge Martin said in Manhattan federal court Friday that Mr. Bennett
had failed to turn over assets and that "damage was done, and continues to
be done, to people who lost life savings while [Gwen Bennett] lives in
luxury."
Before the sentencing, Mr. Bennett called the judge's handling of the case
"illegal, unethical and un-American" and continued to maintain his
innocence.
Mr. Bennett was convicted in June on 42 counts of fraud and
money-laundering, although the jury deadlocked on 11 counts, including
the securities-fraud charge related to the pyramid scheme. He was ordered
to forfeit $109 million, the amount of money he was found guilty of
laundering.
His attorney, Michael D. Pinnisi, said Mr. Bennett would appeal the
conviction and sentence. Because he wasn't convicted on the most serious
charges, Mr. Bennett should only have received a sentence of a few years,
Mr. Pinnisi said.
Prosecutors said Mr. Bennett used his company to sell securities based on
phony office-equipment leases. Bennett Funding filed for bankruptcy
protection in 1996. |
