Business

Northlake businessman sentenced in ponzi scheme

Posted September 12, 2010 11:00 pm

A judge has sentenced the owner of a suburban Chicago printer repair company to 10 years in federal prison in a $28 million Ponzi scheme.

In a Monday statement, the U.S. attorney's office said Matthew Scott was also ordered to pay nearly $5 million in restitution. Prosecutors accused the owner of Northlake-based Gelsco of swindling around 75 people. Some lost their life savings.

Federal prosecutors say Scott lied to investors by claiming he was buying printers and reselling them at a profit.

But prosecutors contend there were no printers and Scott was paying established investors out of funds coming in from new investors.

Scott pleaded guilty in January to one count of mail fraud. Monday's statement says U.S. District Judge John Darrah sentenced Scott on Thursday.

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