Posted:Sat 8:34 AM, Mar 30, 2019
MADISON, Wis. (AP) –A Wisconsin businessman accused of running a multimillion-dollar Ponzi scheme says he will plead guilty in federal court.
The State Journal reports that a plea agreement calls for 61-year-old Patrick O’Connor, of Waunakee, to plead guilty to one count of wire fraud and one count of money laundering. Each charge carries a maximum sentence of up to 20 years in prison.
Authorities say O’Connor took money from people who believed he would invest it in securities for them, but instead spent it on real estate, personal goods and purported dividends to other investors.
O’Connor did business as Madison Financial Services LLC, which was not registered with any federal regulatory agency. Prosecutors say O’Connor took in nearly $12.5 million from investors, most of which was never invested for his clients.