Tucson man defrauds friends, shops e-bay
Anthony Eugene Linton, 57, of Tucson, was sentenced to 33 months in federal prison on Sept. 26. On July 19, 2012, Linton pleaded guilty to wire fraud and engaging in illegal monetary transactions greater than $10,000.00.
According to the plea agreement, Linton devised a scheme to defraud individual investors by causing them to invest in his “Private Trading Pool” (PTP). Linton told investors that he would be investing their funds in the Foreign Currency Exchange Market, but instead used the funds to buy and sell items on e-bay and pay personal expenses including mortgage, car, and credit card payments.
Linton advised investors that their investments would be free of tax consequences because they could “gift” to him up to $12,000.00 a year to invest in the PTP tax free, and that he could then “gift” their return on investment back to them tax free for amounts up to $12,000.00 a year.
Linton caused at least twenty-six investors to “invest” approximately $808,685.00 in the PTP. Linton paid investors approximately $331,127.44 in Ponzi-type repayments with the use of other investors’ funds.
A restitution hearing is set for Dec. 20, 2012.
The investigation was conducted by the Internal Revenue Service – Criminal Investigation.