UPDATE: ROCKFORD (WIFR) – A Rockford man has been sentenced to spend 9 and a half years in federal prison for mail fraud.
64-year-old James Pantazelos of Rockford was sentenced to spend 9 and a half years in federal prison for operating a Ponzi-type scheme in which he defrauded investors out of more than $4 million.
The fraud occurred from May 2007 through December 2010.
Pantazelos pled guilty to the charge in September 2012.
ROCKFORD (WIFR) - -He promised up to 200% return on their investments but according to the U.S. Attorney's Office it was all part of a Ponzi scheme, lead by a Rockford man.
James Pantazelos, 61, was indicted today for defrauding investors out of more than four-million dollars. Court records show he lured them into investing in his his company "Destiny's Partners" which he says traded bank notes in foreign markets.
It says he instead used their money to buy and repair homes, attempt to open a restaurant and splurge on other high-end items.
Pantazelos was eventually caught after investors grew weary of excuses on why he couldn't pay up.