A Menomonee Falls, Wis., man has been sentenced to two years in prison for operating a $2.1 million Ponzi scheme that went on for seven years, the Securities and Exchange Commission announced Tuesday.
Michael R. Enea was sentenced to prison July 15 in U.S. District Court in Wisconsin and ordered to pay $756,000 in restitution for operating a Ponzi scheme from 2006 to 2013. Enea cheated 18 investors out of $2.1 million, the SEC said. He pleaded guilty earlier this year to wire fraud and filing a false income tax return.
In addition to the criminal penalties, Enea has been barred by the SEC from the financial industry.
Enea told investors they would be investing in credit card processing portfolios that entitled them to periodic residual payments, which were based on the fees merchants paid to process credit card transactions. The investments were supposed to pay 20 to 35 percent in returns, the U.S. Attorney said.
Instead of investing the money, Enea used the funds to pay his own expenses or to repay some of the early investors, the SEC said.