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Guilty Plea in Alleged Ponzi Scheme That May Have Cost Investors Millions

Posted on Aug 26, 2011

On July 22, 2011, Ira J. Pressman of Bala Cynwyd, Pennsylvania pleaded guilty to federal mail fraud, wire fraud, and money laundering charges related to an alleged Ponzi scheme. According to the government, Mr. Pressman may have schemed 20 investors out of more than $6 million.

Federal prosecutors allege that Mr. Pressman formed PJI Distribution Corp. in July 2006. Shortly after that, he began soliciting people to invest in closeout merchandise deals. Prosecutors further allege that Mr. Pressman informed his investors that the investments carried no risk and could earn returns of up to 100% each year. The government says that a minority of the deals handled through PJI Distribution were legitimate, but that the majority of the deals were not legitimate.

Mr. Pressman's alleged Ponzi scheme began to unravel in December 2010 when he was supposedly unable to make payments to investors.

Sentencing is scheduled for November 9, 2011. Mr. Pressman faces a potential 97-121 months in jail.

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