U.S. District Judge Charles Fleming ordered Paul Lebo to repay $635,312 to 106 people who invested in a non-operational fund and bought worthless options from August 2017 to October 2021.
In documents, Assistant U.S. Attorney Erica Barnhill said Lebo, 41, induced people to invest in his hedge fund. When he couldn’t repay them, he sought out short-term loans from them, knowing that he would never pay them back. Barnhill said in documents that Lebo used the money for personal expenses and to make losing trades in the stock market. He paid off early investors with money from clients who contributed later, which is the framework of a Ponzi scheme.He was originally charged in October 2021 and released pending future court appearances, but he fled Northeast Ohio. He was apprehended in a New Jersey casino in April, attempting to steal a slot ticket voucher valued at $252.
Lebo’s defense attorney, Jacqueline Johnson, urged leniency, saying Lebo had never been in trouble before. He had worked in banking and finance before opening his business in 2017. If you purchase a product or register for an account through a link on our site, we may receive compensation.and agree that your clicks, interactions, and personal information may be collected, recorded, and/or stored by us and social media and other third-party partners in accordance with our