A federal jury in New York convicted Lexington lawyer Douglas C. Brandon and three New Jersey men on fraud charges after a seven-week trial that ended Thursday.
Brandon was found guilty of one count of conspiracy, two counts of securities fraud and four counts of wire fraud for his role in what prosecutors described as an international Ponzi scheme involving more than 180 investors and at least $210 million. A mistrial was declared on an eighth count of the indictment.
Brandon, 61, a graduate of the University of Louisville’s law school, is scheduled to be sentenced Oct. 17.
He could receive up to 10 years in prison and a $1 million fine on each of the securities fraud counts and up to five years and a $250,000 fine on the other counts.
“The verdict is wrong, and we are going to fight it to the death,” said Bill Ramsey, a Nashville lawyer. “He just trusted too many people.”
The U.S. attorney for the Southern District of New York charged that Credit Bancorp was actually a scheme to enable Blech to finance a lavish life in the south of France, where he had a manor house, luxury cars and a yacht.
Credit Bancorp appeared to be successful because it was operated as a Ponzi scheme in which money from new investors was used to pay earlier investors, the prosecutors charged.