David Downey, 50, faces a possible prison sentence of up to six years, plus fines of up to $750,000.
An entrepreneur accused of running a Ponzi scheme to expand a network of luxury event venues was ordered to surrender a chunk of proceeds from the sale of his $2.4 million home while retirees who invested millions of dollars in a proposed facility in Carmel pursue legal claims.
Without a big settlement, or a resounding victory at trial, victims in the fraud would be left with an underwhelming recovery—currently 11 cents on the dollar, based on distributions of $18 million in December 2015 and $5 million last October.
Kenneth Ray Cleveland, 64, received the punishment from U.S. District Court Judge Tanya Walton Pratt after pleading guilty to federal fraud and money laundering charges.
In an attempt to reopen his case, Keenan Hauke says Barnes and Thornburg partner Larry Mackey—who is now married to Hauke’s ex-wife—did not adequately represent him.