Arizona Man Sentenced to 30 Years for Multi-Million Dollar Ponzi-Style Fraud
From the desk of Jim Eccleston at Eccleston Law
An Arizona man has been sentenced to 30 years in prison for running a Ponzi-style investment scheme that defrauded more than 100 victims out of millions of dollars, according to the U.S. Attorney’s Office for the District of New Mexico. According to KRQE News, many of the victims are from Northern New Mexico.
John Lopez, 74, operated through his company, Personal Money Management Company (PMMCO), from 2014 to 2022. He falsely promoted a proprietary algorithm that he claimed generated above-market returns. In reality, Lopez used investor funds to purchase precious metals and to make Ponzi-style payouts totaling $6.1 million to earlier investors to maintain the appearance of profitability, according to KRQE News.
The Department of Justice reported that Lopez raised approximately $24 million from investors. Of that amount, he used $16 million to acquire precious metals, which he stashed in his home, office, a rented storage unit, and even buried underground. When federal agents seized PMMCO’s assets in November 2021, they recovered less than $15 million—far below the $39 million Lopez falsely claimed to manage. Despite the seizure, Lopez continued to solicit new investors and issue fabricated account statements.
KRQE News reports that prosecutors presented evidence that Lopez failed to track individual investments, misrepresented account balances, and discouraged large withdrawals to keep the scheme afloat. He paid himself a six-figure salary and portrayed himself as a wealthy investor with holdings comparable to major institutions.
Lopez’s misconduct extended beyond the scheme itself. After his indictment, he violated court-ordered release conditions at least five times—both before and after his conviction—by committing additional fraud, making unauthorized transactions, refusing to turn over financial records, and contacting victims and witnesses in violation of restrictions.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
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