Florida trader indicted in $20M Ponzi scheme

Oct 16, 2009 @ 3:29 pm

By Associated Press

A Florida man faces a 55-count federal indictment in Pennsylvania that accuses him of bilking investors out of millions of dollars that he spent on luxury items.

The indictment against Sean Healy was unsealed Thursday in federal court in Harrisburg. It includes charges of fraud and money laundering.

The 38-year-old Mr. Healy allegedly collected nearly $20 million from more than 50 investors primarily in Pennsylvania beginning in 2003.

But prosecutors say he spent it on a waterfront mansion, jewelry and exotic sports cars instead of investing it as promised.

Some of those assets were seized as a result of lawsuits filed in July by the Securities and Exchange Commission and the Commodities Futures Trading Commission.

According to a release from the SEC in June, Mr. Healy promised investors that he would use their money to trade in securities and commodities futures on their behalf, but instead used the money for personal purchases, as well as "Ponzi-like payments to investors he defrauded."

The SEC alleged Mr. Healy used the funds to buy a $2.4 million home and more than 10 luxury vehicles including Porsches, Lamborghinis, Ferraris, a Bentley, and a Lincoln limousine. Healy further spent investor money to lease 2,500 square feet of garage space to store the vehicles. He also purchased approximately $1.4 million worth of jewelry including an engagement ring for his wife, and approximately $2.3 million in home renovations, including a $500,000 home movie theater.

The SEC's complaint further alleges that when Healy was questioned about his trading, he provided falsified bank and trading records to the Pennsylvania resident and to the U.S. Attorney's Office for the Middle District of Pennsylvania.

One of Healy's lawyers is former U.S. attorney Thomas Marino. He declined comment Friday.


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