A Georgia man who defrauded victims out of more than $115 million in an “elaborate” Ponzi scheme was sentenced to more than 20 years in prison on Tuesday. File Photo by Carolyn Kaster/UPI |
License PhotoDec. 20 (UPI) — A Georgia man who defrauded victims out of more than $115 million in an “elaborate” Ponzi scheme was sentenced to more than 20 years in prison, the Justice Department announced Tuesday.
Christopher Parris, 42, and co-conspirator Perry Santillo led a network of scammers to trick investors, raising millions of dollars for more than a decade. In the beginning, they were based in Rochester, N.Y., where they formed a company called Lucian Development. They misappropriated funds raised from investors, using them instead to purchase at least 15 brokerage firms across the United States.
Parris currently resides in Lawrenceville, Ga.
The fraudulent business offered financial services and investors were offered a number of opportunities that were built on deception. Instead, funds were not used as intended and investors did not see appropriate returns. The scammers used the funding they generated to “finance lavish lifestyles,” expand the business and lure new investors.
Santillo was sentenced to 210 months in prison earlier this year.
Parris would eventually use the COVID-19 pandemic to his advantage, offering sales of N95 masks to potential customers, then failing to deliver the products. He pleaded guilty in a case that began in the District of Columbia, where he was accused of defrauding the U.S. Department of Veterans’ Affairs and eight other companies in the early months of the pandemic.
Parris, acting as the owner of Encore Health Group, claimed to sell medical equipment, including personal protection equipment, between February and April 2020. At the time, N95 masks were not easily obtainable. Parris offered large quantities of 3M brand N95 masks which he did not have the ability to obtain. There is no record of him having a supplier of masks or of him trying to acquire the masks he claimed to be selling.
In March 2021, Parris attempted to secure a sale with the VA for $3.075 million paid up front. During his fraudulent venture he took in more than $7 million in up front payments for products he had no means of delivering. He attempted to make orders of more than $65 million for equipment he did not have.
U.S. District Judge for the Western District of New York Frank P. Geraci Jr., sentenced Parris to 244 months in prison.
“The schemes for which this defendant was sentenced, including the purported sale of non-existent medical supplies during the pandemic, were outrageous,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division.
“Fraud like this, playing off fears during a pandemic, merits a significant sentence, as the court imposed today. This sentence should be a warning to anyone who thinks they can get away with defrauding the government or others during a crisis,” said U.S. Attorney for the District of Columbia Matthew M. Graves.
