NEW YORK – A self-employed accountant in Rockland County was sentenced Wednesday in Manhattan federal court to three years in prison in connection with his operation of an 11 year, $6 million Ponzi scheme, federal authorities said.
Alan Ritter, 70, of Monsey, pled guilty to three counts of wire fraud last September.
According to information and statements made during the plea proceeding, in 2001, Ritter suffered more than $500,000 in losses from an unrelated business venture.
In order to cover those loses, he solicited hundreds of thousands of dollars in loans from friends and clients of his accounting practice, falsely telling them he intended to use the money to invest in real estate ventures.
For the next 11 years, he operated a Ponzi scheme in which he borrowed more and more money for purported business ventures, but used the money to cover interest payments on the original loans he secured, and to pay for his own personal expenses.
Ritter also embezzled funds entrusted to him by several clients, using their money to cover the interest payments on the Ponzi school loans and to pay for his personal expenses.
In addition to his prison time, he was sentenced to three years of supervised release and ordered to pay restitution and forfeiture, which will be determined at a later date.
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