Mound Woman Sentenced for Role in $1.1 Million Big Island Ponzi Scheme

Mound Woman Sentenced for Role in $1.1 Million Big Island Ponzi Scheme Photo: KSTP

June 29, 2018 01:15 PM

A Mound woman has been sentenced to two years in federal prison for what authorities say was her role in a $1.1 million Ponzi scheme to which her husband has pleaded guilty and been sentenced to more than nine years in prison.

A release from the Minnesota Commerce Department said Alex Reaves Lundin, 26, pleaded guilty in February to conspiracy to commit mail fraud. She was sentenced Thursday in U.S. District Court in St. Paul.

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RELATED: Mound Man Sentenced to 9 Years for Running Ponzi Scheme

In addition to the prison sentence, she must also serve three years of supervised release and pay $315,000 in restitution.

Jeremy Lundin pleaded guilty to mail fraud and money laundering and was sentenced to 110 months in prison last February. In addition to the prison time, he was ordered to pay $969,788 in restitution. 

RELATED: Mound Man Pleads Guilty to Running Ponzi Scheme

According to a release from the U.S. Attorney's Office in Minnesota at the time, Lundin reportedly claimed to conduct "options trading" through his company Big Island Capital. In that role, according to his guilty plea, he solicited more than $1 million from at least 51 investors. However, he instead used that money to fund personal expenses for himself and his wife.

According his guilty plea, Lundin created phony account statements and provided investors online access to fictitious quarterly statements.

The release Friday claims Alex Lundin admitted that by October 2016, she was aware her husband was not conducting options trading as he promised investors, and that she and her husband had spent all of the investor funds on personal expenses.

She allegedly continued to assist her husband in carrying out the scheme for another eight months by soliciting new investors and drafting text messages and emails to those who had invested, designed to make them think their money was safe.

Credits

Frank Rajkowski

Copyright 2018 - KSTP-TV, LLC A Hubbard Broadcasting Company

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