GREENBELT, Md. (WJZ) — A former chief financial officer was sentenced to federal prison for conspiracy related to a $20 million Ponzi scheme.
Bradley Mascho, 53, of Frederick, was sentenced to 30 months in federal prison for conspiracy to commit securities fraud and for making a false statement.
According to his plea agreement, beginning in at least 2009, Mascho worked with Dawn J. Bennett at Bennett Group Financial Services LLC.
Between Dec. 2014 and April 2017, Bennett and Mascho solicited individuals to invest money in DJB Holdings, offering an interest rate of 15 percent via convertible or promissory notes.
Bennett and Mascho made false and misleading statements in order to entice people to invest.
Between Dec. 2014 and July 2017, Bennett and Mascho solicited and received over $20 million from more than 40 different investors. The evidence showed that Bennett and Mascho misappropriated investor funds by using them to pay their personal expenses and to repay previous investors.
Mascho also admitted that on June 19, 2017, he lied under oath in a deposition related to an investigation by the U.S. Securities and Exchange Commission into Bennett and DJB Holdings’ unlawful issuance of convertible notes to investors.
From 2014 through 2016, Mascho received compensation from BGFS and Bennett personally of about $209,000 to $219,000.