Wednesday, Dec. 8, 2010 | 1:25 p.m.
A federal judge in Las Vegas sentenced two men to prison Tuesday who convinced several individuals in 2003 to invest large sums of money in a fraudulent “high yield” investment scheme, Nevada's U.S. Attorney Daniel Bogden said today.
Gary Colombo, 54, of Las Vegas, and Michael Jenkins, 45, of Memphis, Tenn., were sentenced by Senior U.S. District Judge Charles Wolle to 57 and 48 months in prison, respectively, and three years of supervised release. Colombo and Jenkins also were ordered to pay $10 million in restitution.
Colombo was remanded to custody following sentencing and Jenkins was permitted to self-report to prison by Feb. 28. Colombo, Jenkins, and a third defendant, Daniel Ellis, who is now deceased, were indicted in April 2007. Colombo and Jenkins pleaded guilty this summer to conspiracy to commit wire fraud.
In 2003, the defendants promised victims "no risk" and "high gain" investments on sums of $10 million or more. The defendants also promised that the investors’ funds would be securely held in a major bank and returned to them within a specified time. The defendants used corporate alter egos through which the investment program was offered. Entities involved in the scheme include “Arquest Inc,” “ZAG LLC”, and FRETUS FIDUCIA PRIVATE BANK. The defendants persuaded at least three people to invest in their scheme for more than $30 million total.
The money was never invested and was instead used for personal gain, including the purchase of luxury automobiles and multiple homes in Grand Junction, Colo.
This case was investigated by the FBI and IRS Criminal Investigation, and prosecuted by Assistant U.S. Attorneys Kathryn Newman and Steven Myhre.
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