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Local money manager pleads guilty to $100 million scheme
CINCINNATI (Joe Webb) -- Glen Galemmo admitted in court Wednesday morning he ran a pretty elaborate scheme that handled around 100 million dollars of other people's money from 2005 to 2013.
He admitted he lied to them to get their money, lied to them about investing their money, then lied to them about how their investment was growing. Many of them were duped, robbed and then paid taxes on income they didn't earn. For that, Glen Galemmo is going to federal prison.
Glen Galemmo didn't have anything to say on his way into federal court Wednesday morning. But he had worked out a deal before getting there. Once inside, Galemmo pled guilty to wire fraud and money laundering.
Court documents detailed an 8 year scheme of luring investors with false promises and pocketing much of the money himself. It was a house of cards that came crashing down last summer.
IRS Criminal Investigator, Kathy Enstrom said, "A person who creates a web of financial lies will soon be caught up in it. Mr. Galemmo offered rates of 30% return to his investors and unfortunately these promises were not upheld."
Kenneth Parker from the US Attorney's Office said, "It was your typical Ponzi scheme. The later investors money was used to pay the early investors."
But, according to investigators, not much was invested. In addition to a likely prison sentence, Galemmo agreed to forfeit about 3 million dollars in assets including his Madison Road home and the Walnut Hills office he bought and renovated as part of his ruse. Investigators say the building was stocked with large computer monitors tracking investment accounts that didn't exist.
His attorney, says Galemmo, is committed to making victims whole.
"On behalf of Mr. Galemmo he says, 'I'm sorry. I've done wrong. And I'm going to do what I can to make it right.' Like a lot of people, they start out walking down the right path and something happens and they're faced with a choice and they make the wrong choice."
Investigators say the amount of money lost by investors was in the range of 7 to 20 million dollars. Galemmo faces up to 40 years in prison but is likely to get somewhere between 8 and 15.5 years.
In his plea agreement, Galemmo agreed not appeal his sentence unless is it's more than 188 months, or 15 years 8 months. The government won't appeal the sentence unless it's less than 8 years one month.
Judge Herman Weber will sentence Galemmo on May 28th. Several of Galemmo's victims were in federal court for Wednesday morning's hearing. They did not want to speak on camera. Many of them are parties in civil suits filed against Galemmo to recover their lost investments.