A New Jersey woman on Tuesday pleaded guilty to running a $45 million Ponzi scheme in which she promised to invest money in real estate, but instead gambled some of it at casinos.
Federal prosecutors said Antoinette Hodgson, 58, pleaded guilty to one count of wire fraud and one count of conspiracy before U.S. Magistrate Judge Ronald Ellis in Manhattan federal court. She had been charged in June. [ID:nN16167326]
Hodgson is expected to be sentenced to between 51 and 63 months in prison, and fined as much as $1 million.
The Montclair resident also agreed to forfeit $5 million, her stake in 24 properties she bought as part of the scheme and a Dunkin’ Donuts franchise in Arizona, prosecutors said.
Antoinette Hodgson, 58, of Montclair, New Jersey, entered her plea today to conspiracy and wire fraud in Manhattan federal court. Hodgson paid off early investors in her business with funds from later participants and spent some of their money on herself, U.S. Attorney Preet Bharara said in a statement.
“Hodgson promised investors high rates of return,” Bharara said. “Most of the $45 million she received from investors was immediately used to repay other investors.”