Couple Sentenced to Prison for Fraudulent Loan Ponzi Scheme

An Ohio couple was sentenced to prison for operating a stock-based loan scheme that defrauded investors out of nearly $20 million.  Michael Spillan, 44, and Melissa Spillan, 41, received sentences of 140 months and 36 months, respectively, in federal prison, to be followed by several years of supervised release.  The Spillans had previously pled guilty to one count of conspiracy to commit securities fraud, mail fraud and wire fraud.  Michael Spillan also pled guilty to one count of securities fraud, one count of wire fraud, and one count of mail fraud.  

The Spillans operated several companies, including One Equity Corporation, Triangle Equities Group, Inc., Victory Management Group, Inc., and Dafcan Finance, Inc.  From 2003 to 2008, investors were solicited to transfer shares of stock to the Spillans as collateral for low-interest loans.  Investors were promised the return of their shares upon repayment of the loans.  Instead, the Spillans sold the shares, using the proceeds for personal expenses and to fund loans to new investors.  In total, over $25 million was swindled from approximately 50 investors.  

The Spillans were also ordered to pay restitution for the full amount of investor losses.  Michael Spillan has several past convictions for offenses including bank fraud, forgery, theft, passing bad checks and safecracking.