Amherst men face judge for Ponzi scheme

AMHERST, N.Y. (WIVB) - They're accused of bilking investors out of millions, dashing dreams with an elaborate scheme.

Three Amherst men faced a federal judge on fraud charges Friday.

And victims told News 4's George Richert about the immensity of the crime.

Jan Borman lost $100,000 in the scam and said, "He saw us but he didn't look at us."

Borman was glad to finally see 55-year-old Guy Gane in handcuffs because she knew nearly two years ago, she might never see her $100,000 again.

Agents raided his Amherst offices of M-One Financial in 2008.

That day, they took away a truckload of documents, but it's taken until now for the U.S. Attorney's Office to unseal a 51-count indictment against Gane, 50-year-old James Lagona, and 58-year-old Ian Gent, all of Amherst.

They're accused of running a Ponzi scheme, taking investors money, promising 10% returns, and using new clients money to pay some of the old clients.

More than 50 investors may have lost a total of more than $5 million.

"And I think this serves as yet another cautionary tale," reminded U.S. Attorney, William Hochul. "If a deal sounds to good to be true, in this case, the indictment alleges it was too good to be true."

>>>Assistant U.S. Attorney, Gretchen Wylegala explains letters were sent to the victims, falsely stating that their money was safe, when in reality it was long gone.

Borman expressed, "I'm victimized, but I'm not embarrassed to tell you that because I didn't do anything wrong. All I did was trust somebody to take care of my funds, and then they stepped all over me."

When she started investing with him in 2004, she was getting returns on her money.

Even her last statements in 2008 showed $49,000 in bold print, when actually the value of her account was just over $1,000

"We had statements, but we didn't know that the money had been withdrawn," explained Borman.

Tom Campbell, who lost $33,000 exclaimed, "But all we really want is justice, and I think it's a good step today, because he's been out there for two years, walking around free."

All three defendants are free on their own recognisance and are due back in court May 28th.

They face up to 20 years in prison if convicted of mail fraud and conspiracy to commit mail fraud.