Attorney General Dave Sunday announced charges against a Montgomery County man accused of operating a Ponzi scheme that bilked investors of more than $3.8 million, using a ruse that funds would be invested and generate monthly returns.
Richard L. McNeil, 59, of Norristown, is charged with felony theft by deception, dealing in proceeds of unlawful activity, violations of the Pennsylvania Securities Act and other related offenses.
The Pennsylvania State Police filed charges Friday. McNeil turned himself on Monday and is expected to be arraigned later in the day.
The joint investigation, conducted in collaboration with the Office of Attorney General’s Financial Crime Section, revealed that McNeil — after making guarantees on returns — did not actually invest the victims’ money.
“This defendant duped dozens of people into investing substantial funds — victims who believed they were to see monthly gains, but instead were left with depleted bank accounts and unanswered pleas for their money,” Attorney General Sunday said. “Investment fraud is obviously devastating to victims, and we will work hard to recover restitution as part of this prosecution.”
According to the investigation, McNeil solicited funds from investors by claiming he would invest their money in various investment opportunities that would generate steady returns. Investors were promised monthly interest payments and the return of their full principal investment at the conclusion of the investment term.
The investigation revealed that more than $1.8 million remains owed to 50 investors, though some initial investors did receive payouts. Several victims sustained six-figure losses. Multiple victims lost over $200,000 to McNeil.
