ANDREW BODNAR SENTENCED TO 11 1/4 YEARS IN PRISON
AND ORDERED TO PAY $20 MILLION IN RESTITUTION

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

AKRON -- Akron attorney and financial planner Andrew Paul Bodnar, Jr. was sentenced today to 11¼ years in prison by U.S. District Court Judge James S. Gwin.  The judge also ordered Bodnar to pay $20 million in restitution.

In a plea agreement in April, 2001, Bodnar pleaded guilty to charges of:

• securities fraud
• mail fraud
• conspiracy to commit securities fraud, mail fraud and wire fraud
• tax evasion

Bodnar was the mastermind of a Ponzi scheme in which he defrauded at least 700 investors of more than $41 million.  Many of the investors were elderly residents of the Akron area. 

After an extensive investigation, the Ohio Department of Commerce’s Division of Securities referred the criminal case in February 1999 to the U.S. Attorneys Office in Cleveland. 

In August 1998, the State filed a motion asking the Summit County Court of Common Pleas to appoint a receiver to recover the assets of Bodnar and his affiliated entities.  Judge Patricia Cosgrove appointed David Butler of the Columbus law firm of Chester, Wilcox and Saxbe as receiver.  He continues the recovery efforts. 

"Judge Gwin's sentence provides justice to the hundreds of investors who were defrauded by Andrew Bodnar.  Bodnar destroyed the financial security of many innocent victims, and I am happy that the Ohio Division of Securities and the U.S. Attorneys Office was able to achieve this result for those victims," said Ohio Securities Commissioner Debbie Dye Joyce.

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The Division of Securities promotes an honest and fair securities market where individuals and businesses can raise capital and investors can expect a fair return on their investment.  Other Commerce divisions enforce regulations regarding industrial compliance, financial institutions, real estate, liquor, and unclaimed funds, among others.  The department’s internet address is www.state.oh.us/commerce