A former investment adviser who worked in Raleigh was sentenced on Tuesday to four years in federal prison for a Ponzi scheme in which authorities said he took "hundreds of thousands" of dollars from clients for shares in a company that did not exist.
Hugh Monroe Dyson, 67, lives in Holly Springs, court officials said in reporting that Chief District Judge James C. Dever, III, imposed the sentence on Dyson, ordered him to pay back proceeds from the investment and be on three years’ parole after he is released.
The U.S. Attorney’s Office charged Dyson in July last year with mail fraud. He waived his right to be indicted by a grand jury in August and later pleaded guilty
Some of the transactions for the investments in what Dyson called Keyport Oil took place by mail, and prosecutors said Dyson mailed investors phony stock certificates he had “fabricated by using scissors, clear tape and a copy machine.”
Dyson used some of the invested money himself and used some from new investors to pay supposed Keyport profits to earlier ones.
Prosecutors charged that the Keyport scheme ran from March 1993 and April 2012.
At the sentencing, the U.S. Attorney’s Office said, Dyson asked to be put on probation so he could make money to pay back the investors he bilked.
Prosecutors said, however, that Dyson had lost a lawsuit in which investors demanded money back and had not paid any of that.
In one lawsuit against Dyson, A Raleigh couple said he had worked for H&R Block Financial Advisers and Ameriprise while the Keyport scheme was going on.