Friday, May 15, 2020

Nazareth lawyer disbarred after admitting Ponzi scheme

By Peter Hall

An Nazareth attorney who pleaded guilty last month to defrauding clients of more than $2.7 million has been disbarred. 

Todd H. Lahr, who had offices on Hamilton Street in Allentown, did not contest efforts by the state attorney disciplinary office to disbar him, according to an order filed in state Supreme Court.

Lahr, 60, pleaded guilty April 23 to conspiracy to commit securities fraud and wire fraud, securities fraud and wire fraud. He is scheduled to be sentenced Aug. 3 by U.S. District Judge Edward G. Smith.

Federal prosecutors in March made public an indictment charging Lahr with persuading clients to invest in global business opportunities that didn’t exist.

Instead, the U.S. attorney’s office in Philadelphia said, Todd Lahr raised more than $2.7 million from victims that he used to make payments to earlier investors and to pay his home mortgage, his child’s school tuition, utility bills, and other personal expenses.

Lahr told investors, who included clients of his Allentown law practice, that he and Megas would use their money to invest in business opportunities around the world, including mining companies in Papua New Guinea and properties in London and Barcelona, court records say.

According to court records, Lahr fraudulently told his investors that 100% of their money would be used for investments. He persuaded some to invest by providing promissory notes that he claimed would provide a 10% annual return on their investments. Lahr allegedly gave others shares of THL Holdings, the indictment says.

Lahr raised money from at least 20 different investors, the indictment alleges. He and a business partner also face a lawsuit from the U.S. Securities and Exchange Commission seeking the return of profits from the alleged scheme with interest and fines. It also seeks court orders against future violations of the federal securities laws.

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Nazareth lawyer disbarred after admitting Ponzi scheme

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