In September 2017, Newsholme was criminally charged with mail fraud, wire fraud and securities fraud and released on bail, according to federal prosecutors. In October, law enforcement discovered that Newsholme had continued his scheme while out on bail and he was subsequently charged with additional counts of fraud and aggravated identity theft, prosecutors said. His bail was revoked and he was detained pending trial.
The criminal wire fraud charge to which Newsholme pleaded guilty carries a penalty of up to 20 years in prison and a $250,000 fine. Aggravated identity theft carries a penalty of up to two years in prison, which must run consecutive to his other counts, while the false tax return charge carries up to three years in prison and a $250,000 fine.
Newsholme is scheduled to be sentenced for his criminal charges on July 19.