Oklahoma couple sentenced to prison for Vegas Ponzi scheme
An Oklahoma couple were sentenced to federal prison Tuesday for carrying out a $6.1 million Ponzi scheme.
Linda Livolsi, 46, the accused leader in the investment scheme, was sentenced to 45 months in prison and ordered to pay $6.1 million in restitution.
She also was ordered to serve three years of supervised release after prison with nine months under home confinement.
Her husband, William Livolsi Jr., 55, was sentenced to 24 months in prison and ordered to pay $5 million in restitution. He also was ordered to serve three years of supervised release with nine months of home confinement.
U.S. District Judge Andrew Gordon told Livolsi he does not have to serve his sentence until after his wife completes her prison term, so he can care for the couple’s two children, ages 9 and 11. Linda Livolsi is to report to prison on July 24.
The couple in court expressed remorse and begged for probation to avoid harming their young children for their wrongdoing.
Linda Livolsi — who said she suffers from the immune system disease lupus and other debilitating ailments — also told Gordon her life expectancy is roughly five years and she fears she will not get proper medical treatment in prison.
But Assistant U.S. Attorney Gregory Damm, who accused the couple of letting the scheme flourish for several years, sought prison time.
“This is a classic Ponzi scheme, your honor, and one in my opinion that cries out for incarceration,” Damm said.
Damm chided the couple for using their children in an attempt to minimize punishment.
Gordon expressed a similar sentiment, telling the defendants: “You weren’t thinking about the kids when you were committing this crime.”
Linda Livolsi pleaded guilty in October to one count of wire fraud and one count of filing a false tax return. Her husband pleaded guilty to wire fraud.
After the sentencing, Nevada U.S. Attorney Daniel Bogden said, “The defendants used convincing tactics and tempting monetary returns to persuade their victims to part with their money. If someone offers you unusually high returns on an investment, it’s likely too good to be true.”
The couple built the Ponzi scheme around a Las Vegas company called RGM Enterprises, which was used to lure people into investing in what they thought was a hedge fund with high returns, according to their plea agreements.
However, the money never was invested and instead went to enrich the couple and pay off other investors. One investor was taken for $5 million in 2007, the agreements state.
Prosecutors alleged the scheme, investigated by the FBI and IRS, occurred between 2003 and 2007.
The half-dozen victims were fooled into thinking their investments were good because the couple gave them false financial and account statements, prosecutors alleged.
Contact Jeff German at jgerman@reviewjournal.com or 702-380-8135. Find him on Twitter @JGermanRJ
