SoCal Businessman Faces Five Years
SAN DIEGO (CN) - A 44-year-old businessman pleaded guilty Tuesday to defrauding investors of more than $2 million, federal prosecutors said.
Douglas Ellingson faces up to five years in federal prison for wire fraud conspiracy at his Oct. 28 sentencing, the U.S. Attorney's Office said in a statement.
He admitted that he conspired with co-defendant William Ison and James Pantazelos to defraud investors in Ison's business, Olathe Mining Co., the U.S. attorney said.
Pantazelos was sentenced in February to 19 1/2 years in federal prison and ordered to pay restitution of $3.3 million.
Prosecutors did not elucidate the state of the proceedings against Ison.
According to the U.S. attorney's statement: "In order to promote Ison's appearance of wealth to potential investors, Ellingson and Ison falsely claimed Ison was the head of a large non-profit foundation that gave over a 'trillion dollars' to various humanitarian causes. They encouraged investors to hand over funds by promising that the profits would be used to support charitable causes.
"Ultimately, the victims did not receive promised profits or a return of their original investments. In total, Ellingson personally obtained over $2 million from victims, almost all of which he wired directly to Ison."