(STL.News) – An Allentown, Pennsylvania, attorney pleaded guilty today for his role in a $2.7 million investment fraud scheme that victimized his law clients.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney William M. McSwain of the Eastern District of Pennsylvania and Special Agent in Charge Michael J. Driscoll of the FBI’s Philadelphia Field Office made the announcement.
Todd H. Lahr, 60, of Nazareth, Pennsylvania, pleaded guilty before U.S. District Judge Edward G. Smith of the Eastern District of Pennsylvania to one count of conspiracy to commit securities fraud and wire fraud, two counts of securities fraud and four counts of wire fraud. Sentencing is scheduled for Aug. 3, 2020 before Judge Smith.
According to Lahr’s admissions at the plea hearing, from 2012 through 2019, Lahr conspired with others to perpetrate a securities fraud scheme targeting his own law clients, which involved the fraudulent sale of the securities of two entities, THL Holdings LLC and Ferran Global Holdings Inc. Lahr used investor funds to finance his own lifestyle, paying his home mortgage, his child’s school tuition, utility bills and other personal debts. He perpetuated the scheme by using money that he received from new investors to pay money owed to other investors in the scheme. Total investor losses are estimated to be over $2.7 million, Lahr admitted at the plea hearing.
The FBI investigated this case. Trial Attorney Philip Trout of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael J. Rinaldi of the Eastern District of Pennsylvania are prosecuting the case.