(Alexandria, Va.) -- A midstate man who pleaded guilty to running what prosecutors say was a $3.4 million Ponzi scheme involving nonexistent wholesale jewelry transactions has been sentenced to more than four years in prison.
Thirty-four-year-old Matthew James Addy of Lancaster was also ordered to pay $2.7 million in restitution and to forfeit hundreds of thousands of dollars in jewelry at sentencing in federal court in Alexandria.
According to court records, Addy owned Edward J. & Co., which operated a jewelry store in Lancaster. Prosecutors say Addy recruited people to invest in promissory notes purportedly linked to transactions involving wholesale jewelry and loose precious stones.
Authorities say Addy, who obtained more than $3 million from investors, never conducted any of the transactions. Addy paid some investors with funds contributed by newer investors.
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