Matthew Scott, a resident of the western suburbs, ran a high-speed business printer resale company, or so those who knew him believed. Over 9-years, Scott allowed investors, family members, and friends to invest around $28 million in his business. To all his investors, it seemed to be a profitable business run by an savvy entrepreneur. Many invested their life savings with the 51-year-old.
Unfortunately, it was an elaborate fraud, much like check-kiting. Scott actually used monies from new investors to provide dividends to early investors. What he really did was fabricate business orders, invoices, and etc., and used the investor’s money for himself.
His fraud impacted 75 victims, and some of his victims lost their retirement funds and life savings. Scott was convicted of one count of mail fraud, and received a ten-year sentence for his crime.
The sentence for mail fraud has a maximum penalty of 20-years, but in a plea agreement, it was anticipated that Scott would receive six or seven years. Due to the victim impact statements, the federal judge in the case determined that 10-years was a much more fitting sentence. Of the $28 million invested, Scott’s investors lost $4.9 million, which he was ordered to pay back in restitution.