A retired police detective in Boston, Mass., who was convicted of wire fraud, was sentenced to three months of home confinement followed by two years of supervised release, according to the U.S. Attorney's Office Friday.
Daniel Rice, 53, was sentenced by U.S. Senior District Judge William M. Skretny for his role in aiding and abetting Michael Wilson, 30, a former Hamburg resident, in defrauding investors, the U.S. Attorney's Office said.
They promised investors large returns on phantom investments through companies known as New Frontier, the U.S. Attorney's Office said.
Rice, of Stoughton, Mass., pleaded guilty in connection with his involvement in a deal brokered in January 2010, in which he induced a Montana broker to wire $100,000 in a phony investment with Zodiak Capital, one of New Frontier's fraudulent companies, the U.S. Attorney's Office said.
Rice kept $40,000 before passing the other $60,000 on to an HSBC Bank account in Buffalo controlled by Wilson, the U.S. Attorney's Office said.
In July 2010, Rice was involved in a second deal with Zodiak, and failed to disclose to the Montana broker Zodiak’s connection to Wilson’s companies, officials said. On July 15 and 19, 2010, $71,875 of a second investor’s money was wired into accounts in the Buffalo area that were controlled by Wilson, the U.S. Attorney's Office said.
In July, Wilson was convicted of wire fraud for deals entered into by his fraudulent companies from 2008 to 2010, the U.S. Attorney's Office said.
Wilson attempted to defraud investors of more than $10 million, the U.S. Attorney's Office said.
Wilson is scheduled to be sentenced Oct. 25, officials said.