The man, John H. Goldsmith, 57, pleaded guilty before U.S. District Judge Stefan R. Underhill to one count of securities fraud stemming from a $300,000 investment scheme, according to David B. Fein, U.S. Attorney for the District of Connecticut.
Prosecutors say that between 2005 and 2010, Goldsmith devised and executed a scheme through which he solicited investments from several victims in several nonexistent companies. A copy of the criminal complaint in the case appears at the end of this story.
In one instance, Goldsmith claimed that some of the investments were to be used to buy publicly traded stock at a discount. In another, prosecutors say Goldsmith claimed that invested funds were to be used for setting up a video-sharing website.
Goldsmith defrauded investors of about $300,000, prosecutors say, and converted a “significant portion” of the funds invested to his personal use. He also fabricated checks and bank records to cover his tracks, according to prosecutors.
Underhill scheduled Goldsmith’s sentencing for May 21, where he faces up to 20 years behind bars and fines of up to $5 million.
The case is being investigated by the FBI and the Connecticut Securities, Commodities, and Investor Fraud Task Force.
Citizens are encouraged to report financial fraud by calling 855 – 236-9740 or by e‑mailing ctsecuritiesfraud@ic.fbi.gov.
