3 Amherst men have been charged with orchestrating a Ponzi scheme.

Guy Gane, Jr, 55, James Lagona, 50, and Ian Campbell Gent, 58 face counts of mail fraud and conspiracy to commit mail fraud. Each charge carries a maximum penalty of 20 years in prison, and / or fines up to 5 million dollars.

” We have a reason to believe that over 50 people were victimized by the 3 defendents. Over 5 million dollars was misappropriated, ” says US Attorney William Hochul. ” I think this serves as yet another cautionary tale that people do have to be careful with their money ”

Hochul says the investors were lured with the promise of ten percent interest per year, and one to two percent interest per month. Hochul adds the defendents told the investors that they were going to invest in waterfront property.

A 51-count indictment unveiled today charges the defendents with operating the scheme in connection with firms M-One Financial and “Watermark Financial Services Group”. Both are said to be owned by Gane and operated out of 2425 Sweet Home Rd until May 2008.

The indictment also alleges Gane used money collected to pay back earlier investors, pay salaries to himself and employees, and for rent, cleaning, landscape and travel expenses.

Hochul says anyone who feels they’ve been victimized should contact the United States Postal Service.

“If a deal sounds too good to be true…in this case the indictment alleges it was too good to be true.”

source: http://www.wben.com/Three-Charged-With-Ponzi-Scheme/6669557