INFINITY GROUP OFFICIALS SENTENCED IN FEDERAL COURT

 Criminal Case Referred By Ohio Department Of Commerce’s Division of Securities

 

YOUNGSTOWN -- U.S. District Court Judge Peter C. Economus sentenced Geoffrey P. Benson of the Infinity Group to 30 years in prison yesterday.  Benson was convicted in March by a Youngstown federal jury on 26 counts of mail and wire fraud, conspiracy to commit wire fraud, conspiracy to impede and impair the Internal Revenue Service, and tax evasion. 

In addition, Benson’s wife Susan L. Benson and Geoffrey J. O’Connor of Painesville, Ohio were each sentenced to 10 years, 1 month in prison in connection with the same 26 counts.  Both Bensons are from Waite Hill, Ohio. 

The judge ordered the Bensons and O’Connor to pay $12.4 million in restitution to the investors.   

The Bensons and O’Connor operated the Infinity Group, an investment business once located in Fairport Harbor and later moved to Claridon Township, Geauga County.  The Infinity Group sold investments to as many as 10,000 people worldwide in a $26.6 million pyramid and Ponzi scheme.  Approximately 80 of the investors were Ohio residents. 

“The Division of Securities is extremely pleased with the sentences issued by Judge Economus.  The severity of their sentences is commensurate with the severity of their fraud perpetrated on thousands of unsuspecting investors,” said Ohio Securities Commissioner Debbie Dye Joyce. 

The Division of Securities referred the case to the U.S. Attorneys Office in Cleveland following a year-long investigation.  The Division first learned of the Infinity Group through its Internet Monitoring Program.  Under this program, the Division searches the Internet for offerings available to Ohioans to ensure that the offerings comply with Ohio’s securities laws. 

After the Infinity Group denied the Division the opportunity to review its records, the Division requested and was granted a preliminary injunction in 1997 by Lake County Common Pleas Court Judge Martin O. Parks.  He ordered the company to give the Division access to its records.  When the Infinity Group failed to comply with the Court’s order, the Division, with the assistance of Lake and Geauga County prosecutors and law enforcement, executed search warrants on three Infinity Group addresses.  The Division determined that the Infinity Group was operating a Ponzi scheme in which it paid initial investors with the proceeds of investments by newer investors.  No legitimate investment was ever made by the Infinity Group and no product or service was ever rendered or supplied to the company’s investors.

On February 6, 1998, in an action by the U.S. Securities and Exchange Commission against the Infinity Group, U.S. District Court (Philadelphia) Judge Stewart Dalzell described the company as a “financial train wreck” and closed the company’s operations.  He appointed Robert F. Sanville as trustee to recover money on behalf of the investors.

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