Ponzi scheme nets man over 7 years in prison

A Crozet man who bilked more than $5.3 million from investors in a decade-long Ponzi scheme was sentenced to seven-and-a-half years in prison this morning in Charlottesville’s federal court.

U.S. District Judge Norman K. Moon sentenced John Mark Donnelly to 90 months in prison and three years of supervised release. Authorities said Donnelly also will have to pay restitution for as long as it takes to repay all of the stolen money.

One of Donnelly’s 30-plus victims, Annie Nash, read a statement this morning in court about how her life has been affected by the time. Nash said she and her brother invested the proceeds from the sale of their parents’ home.

Although Nash said she generally believed that people who have committed crimes can be reformed, she said Donnelly isn’t one of them.

“This is a man who has willingly put his kids’ future in jeopardy so he can buy a Hummer with stolen money,” Nash said.

Authorities said Donnelly moved funds between three shell investment companies and mailed out false documents to investors to make it seem like their investments were doing well. The economic downturn unraveled the scheme.

Donnelly, 52, told the audience prior to his sentencing that he was sorry for what he had done.

“I understand what the crime says about me, but I can do something about this,” Donnelly said.

U.S. Attorney Timothy J. Heaphy said it is unlikely that Donnelly will be able to work enough to pay back all of the money once he is released from prison.

Donnelly was not immediately taken into custody. Defense attorney John Davidson said his client will work with authorities and be involved with the civil lawsuits against him brought by the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission.

Davidson said it is likely the federal Bureau of Prisons will order him to a facility within four to six weeks. In the meantime, Donnelly remains out on a $100,000 bond.

Read more of this story in Saturday’s edition of The Daily Progress.