JOHN STEVEN BLOUNT OF LAKE CHARLES SENTENCED
TO 19.5 YEARS IN FEDERAL PRISON FOR $5.8 MILLION PONZI SCHEME
John Steven Blount of Lake Charles was
sentenced on October 22, 2015 by U.S. District Court Judge Patricia Minaldi to
235 months in federal prison in relation to a $5.8 million Ponzi scheme. Base
on a joint investigation conducted by the Securities Division of the Office of
Financial Institutions, Federal Bureau of Investigation, and Internal Revenue
Service, Blount pleaded guilty to one count of wire fraud on July 16, 2015.
According to his guilty plea, Blount admitted to defrauding investors out of
more than $5.8 million through investments in fictitious companies, bonds, and
IRAs promising high rates of return. However, instead of investing
the money he received, Blount transferred the funds to his own bank accounts for
personal use and to support his own business interests. In
order to avoid detection, Blount e-mailed investors false account statements and
provided investors with returns of funds purported to be interest payments. In
fact, these payments came from funds Blount obtained from other victims of the
Over the course of the scheme, Blount paid out
approximately $1.7 million in these "lulling" payments to investors.
Blount was also sentenced to three years of supervised release and ordered to
pay $4.3 million in restitution.