An Ohio man pleaded guilty this week to taking part in a $5 million investment fraud involving 27 victims and a Lancaster business.
Gilbert Lynagh, 55, admitted his guilt before U.S. District Judge Richard J. Arcara and will face a sentence of up to 20 years in prison.
Lynagh between May 2010 and November 2013 conspired with others to fraudulently obtain money and property from investors, Assistant U.S. Attorney MaryEllen Kresse said.
As part of the scheme, Kresse said, Lynagh and another individual formed two companies – i2i Capital LLC and i2i Settlement Partners LLC - and listed a business address in Lancaster.
Lynagh and others, according to court papers, caused 27 victims to invest over $5 million in i2i Capital and/or i2i Settlement Partners, and made false representations about the risks and rates of return.
Prosecutors also claim the victims’ money was used for personal use, and that none of the victims received the promised return on their investments or the return of their original investment. They said at least five investors sustained financial hardship because of lost retirement, savings or investment funds.
Lynagh’s guilty plea is the result of an investigation by the FBI.