A Scottsdale man, James Jeffrey Hinkeldey, was sentenced to 30 years and five months in federal prison, on September 22, 2018. A federal jury convicted Hinkeldey of conspiracy, wire and mail fraud, money laundering, and aggravated identity theft charges earlier this year.
The charges against Hinkeldey stem from his role as one of the leaders in an $18 million investment fraud affecting 225 victims.
From 2006 to 2012, Hinkeldey, now age 66, and several others solicited millions of dollars from victims for purported investment in a variety of projects and companies, including land development in Mexico, recycling companies in Las Vegas and Chicago, and distressed real estate in Phoenix. Hinkeldey and his co-conspirators promoted their fraudulent investment schemes in seminars, magazine articles, radio broadcasts, and private offering documents to give the fraudulent investments the appearance of legitimacy.
In reality, the solicitations and offering documents were riddled with false statements, including the education and experience of Hinkeldey and his co-conspirators, the true ownership of property involved in the projects, and the feasibility of the so-called guaranteed returns. Ultimately, Hinkeldey and his co-conspirators used investor funds not only to line their own pockets, but also to make Ponzi payments to create the facade of a successful business.
Late last year, Hinkeldey’s partner in the conspiracy, Jason Mogler, formerly of Phoenix, Ariz., was sentenced to 24 years and 4 months in federal prison for his role in the fraud. Hinkeldey and Mogler were also ordered to pay restitution to the victims for losses they incurred.