Utah man sentenced to prison for fraud scheme that took millions from investors

A Draper man has been sentenced to federal prison in connection with a scheme in which he took millions of dollars from scores of investors by claiming he could produce returns of up to 300 percent a year.

Andrew Dean Kelley, 42, pleaded guilty earlier this year to one count of securities fraud in connection with his Blackbird Capital Partners investment company.

Instead of investing the money, Kelley admitted in court documents that he used it to pay earlier investors in what is known as a Ponzi scheme, and also diverted cash for his own personal use and benefit.

On Tuesday, U.S. District Judge Dee Benson sentenced Kelley to seven years in prison, followed by three years of supervised release. Kelley must report to prison on Jan. 3, 2018.

Benson also ordered Kelley to pay $7,965,523.58 in restitution.

Read more: http://www.sltrib.com/news/2017/10/05/utah-man-sentenced-to-prison-for-fraud-scheme-that-took-millions-from-investors/