Texas man must repay nearly $71M in Ponzi scheme
Texas man must repay nearly $71M in Ponzi scheme
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BEAUMONT, TEXAS
A 57-year-old East Texas man is going to prison and must repay nearly $71 million in a commodities Ponzi scheme.
A federal judge in Beaumont on Friday sentenced George D. Hudgins of Nacogdoches (na-kuh-DOH'-chis) to 121 months in prison and ordered him to make restitution to victims.
Hudgins in September pleaded guilty to wire fraud, embezzlement and money laundering.
The U.S. attorney's office says a court-appointed receiver and investigators managed to recover about 40 percent of the funds.
Prosecutors say Hudgins, from 2004 through April 2008, solicited and accepted funds from numerous investors. But authorities say he provided "false and misleading information" on past investment returns and used some of the money to support his luxurious lifestyle.
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