United States Attorney Erica H. MacDonald today announced
the sentencing of ALEX REAVES LUNDIN, 26, to 24 months in prison for her role
in a $1.1 million Ponzi scheme orchestrated by her husband, Jeremy Lundin.
LUNDIN, who pleaded guilty on February 15, 2018, was sentenced yesterday before
Judge Wilhelmina M. Wright in U.S. District Court in Saint Paul, Minnesota.
When announcing the sentence, the Honorable Judge Wright told LUNDIN, “You
assisted your husband in a lengthy and complex fraud scheme at the expense of
others. Your victims worked hard for their money; for some it was their life
savings. You spent victims’ money on yourself, motivated by selfishness and
greed to live a lavish lifestyle that you could not afford.”
U.S. Attorney Erica MacDonald said, “Jeremy Lundin swindled
hundreds of thousands of dollars from his friends and associates so that he and
Alex Lundin could buy luxury cars and take expensive trips. When Alex Lundin
found out about her husband’s fraud, rather than taking steps to stop him or
make things right, she helped him keep it going for several more months. The
Lundins lied to and stole from honest, hard-working individuals who trusted
them. Today’s sentence was another step towards justice for those victims.”
“Alex Lundin used investor money for her personal, financial
gain. The Lundin’s spent their client’s investment money to enjoy an
extravagant and luxurious lifestyle,” stated Special Agent in Charge Gabe
Grchan. “Today’s sentencing illustrates that there are consequences for those
who use deceit to enrich themselves at the expense of others. IRS Criminal
Investigators will continue to pursue individuals who engage in this type of
criminal behavior.”
“Today’s sentencing of Ms. Lundin serves as a reminder of
the potential penalty for violating the public’s trust in the U.S. mail”, said
Craig Goldberg, Postal Inspector in Charge of the Denver Division which covers
the Twin Cities.
“Alex Lundin and her husband defrauded friends and neighbors
who trusted them with their life savings,” said Minnesota Commerce Commissioner
Jessica Looman. “Investment fraud is a serious crime and this case shows that
if you commit fraud in Minnesota, you will be prosecuted.”
According to the defendant’s guilty plea and documents filed
in court, from approximately December 2014 through May 2017, Jeremy Lundin
claimed that he conducted “options trading” through his business Big Island
Capital. He worked through a network of the couple’s associates and friends to
solicit investors by promising to generate exponential growth through options
trading, and obtained $1.1 million from 51 investors over a roughly two-year
period. Between May 2015 and May 2017, at least $992,000 in investor funds was
deposited into Jeremy Lundin’s “Big Island Capital” bank account. During
roughly the same time period, however, Jeremy Lundin transferred $933,950 from
the business account directly into his and LUNDIN’s personal checking account.
The couple then used the majority of those investor funds on their personal
expenses including travel, luxury automobiles, a boat, jewelry, retail
purchases, and more than $366,000 in credit card payments.
According to LUNDIN’s guilty plea and documents filed in
court, LUNDIN admitted that by October 2016, she became aware that her husband
was not conducting options trading as he promised investors, and that she and
Jeremy Lundin had spent all of the investor funds on personal expenses.
However, LUNDIN continued to assist her husband in carrying out the scheme for
another eight months by soliciting new investors and drafting text messages and
emails intended to lull current victim-investors into believing their money was
safe. During those final eight months when LUNDIN knowingly participated in the
scheme, investors gave Jeremy Lundin another $315,000.
Jeremy Lundin pleaded guilty to one count of mail fraud and
one count of money laundering. On February 22, 2018, he was sentenced to 110
months in prison.
This case is the result of an investigation conducted by the
Criminal Investigation Division of the IRS, Federal Bureau of Investigation,
United States Postal Inspection Service, and Minnesota Department of Commerce
Fraud Bureau.
Assistant United States Attorney Amber M. Brennan prosecuted
the case.
Defendant Information:
ALEX REAVES LUNDIN, 26
Mound, Minn.
Convicted:
Conspiracy to
commit mail fraud, 1 count
Sentenced:
24 months in
prison
3 years of
supervised release
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