Austin man sentenced to prison for Ponzi scheme

In Austin yesterday morning, 72-year-old Robert Roland Langguth, of Austin, TX, was sentenced to 48 months confinement in federal prison for conducting a “Ponzi” scheme whereby he solicited over 150 investors into legitimate and fictitious construction projects and investments worth over $10 million dollars. Langguth conducted his scheme from 2002 to 2009, and in many instances, the money invested with Langguth was diverted to support his lavish lifestyle. In addition, Langguth’s investors typically did not receive any monthly dividends from the advertised investment, but were in actuality receiving payments from newly solicited investors in keeping with a classic “Ponzi” scheme.

On November 20, 2012, Langguth pled guilty to an information which charged him with one count of Wire Fraud, and one count of Money Laundering, all in violation of Title 18, United States Code, Sections 1943 and 1957. In addition to the prison term, United States District Judge Leroy Yeakle ordered that Langguth pay restitution to the victim investors in the amount of $10,253,203.00. Furthermore, Judge Yeakle ordered Langguth be placed under supervised release for a period of three years after completing his prison term.

This investigation was conducted by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation Division, and the Texas State Securities Board. Assistant United States Attorney Sharon Pierce prosecuted this case on behalf of the government.

Source: http://www.statesman.com/blogs/content/shared-gen/blogs/austin/courts/entries/2013/03/22/austin_man_sentenced_to_prison.html/

[font color=green]Another one bites the dust![/font]