BUFFALO, N.Y. (AP) - A federal grand jury has convicted a 46-year-old former western New York attorney of mail fraud in connection with a multimillion-dollar Ponzi scheme.
Prosecutors said that between January 2008 and December 2010, James MacCallum, of Bemus Point, encouraged victims to liquidate their investments to take advantage of higher rates of return with his investments. MacCallum claimed his investments were secured by real estate and life insurance policies.
Government evidence showed that MacCallum was using the investments of his victims to pay back earlier investors, and also to pay personal, travel, and office expenses.
The scheme defrauded investors out of approximately $3.4 million.
The verdict was announced Friday. Sentencing is set for July. MacCallum faces up to 20 years in prison and a $250,000 fine.
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