Orange Man Gets More Than Eight Years for $6.8 Million Ponzi Scheme

The U.S. Attorney's office for the District of Connecticut reported today that Gregory Viola, 60, was sentenced to more than eight years in prison for a Ponzi scheme that cost investors more than $6 million.

Viola ran the scheme from 2007 to 2011 under the guise of an investment business, the office reported. He ran the operation on the side of his job as a tax preparer, but never licensed or registered his business. He was arrested in August  2011 and pled guilty to two counts of mail fraud in February 2012.

Attorneys say the scheme began when he was unable to pay his investors dividends and began channeling newly invested funds toward older dividends. From there, the scheme spiralled.

“This defendant violated the trust of dozens of investors by stealing millions in funds, which he used to pay his mortgage and for jewelry purchases, country club memberships and other personal expenses,” said U.S. Attorney David Fein.

Fein said Viola created fraudulent online account statements, and as of May 2011, told victim investors that they had more than $10 million on account -- funds that didn't exist.

The attorney's office said several victims took the chance to address the court during sentencing.

"“We are both 80 years old," said one couple who lost more than $100,000. "We invested our life savings and now its gone. We are depressed [and] very worried about last years of life.”

"I equate the financial losses I incurred, due to Greg Viola’s scheme, as devastating as the death of my husband," another victim investor told the court.

U.S. District Judge Vanessa L. Bryant handed down the sentence in Hartford today, which includes three years of supervised release and $6.8 million in restitution.