Federal authorities say a Danbury-based investment adviser has been sentenced to more than three years in prison for defrauding investors of about $600,000 in a long-running Ponzi scheme.
The U.S. Attorney's office said 64-year-old Stephen Blankenship of New Fairfield was sentenced Wednesday in Hartford to 41 months in prison for mail fraud and securities fraud.
Most of the victims had been Blankenship's clients at registered broker-dealers and authorities say he persuaded them to withdraw money from other accounts and invest directly with him. He promised a higher rate of return and that the money would be invested in publicly-traded mutual funds or established securities.
In fact, prosecutors said, Blankenship did not make any investments, using the money for personal expenses and to make payments to clients who asked for returns.
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