Cambria County Investment Advisor Sentenced to 6+ Years in Prison for $4.5M Fraud Scheme

JOHNSTOWN, Pa. – A resident of Cambria County has been sentenced in federal court to six years and six months (78 months) in prison and three years’ supervised release on his conviction of securities fraud, wire fraud, and filing false income tax returns, United States Attorney Scott W. Brady announced today.

United States District Judge Kim R. Gibson imposed the sentence on Douglas P. Simanski, 54, of Lilly, Pa.

According to information presented to the court, between February 2002 and May 2016, Simanski, an investment advisor and broker, devised and executed a scheme to fraudulently obtain approximately $4.5 million from various investors. As part of his scheme, Simanski fabricated "Tax Free Investment" contracts and "fake CDs" which listed guaranteed rates of return and payouts, and used the documents to solicit investors. Simanski used portions of the invested funds to pay "returns" to other investors to make it appear their investments were legitimate. He also used a portion of the funds to purchase personal items and to fund personal home improvement projects, and placed some of the funds into a personal E*Trade account. Also, Simanski filed false income tax returns for 2012, 2013, and 2014.

Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.

Read more: https://www.justice.gov/usao-wdpa/pr/cambria-county-investment-advisor-sentenced-6-years-prison-45m-fraud-scheme