Delaware businessman sentenced in $3.3M Ponzi scheme
WILMINGTON, Del. (AP) — A former Delaware real estate broker has been sentenced to more than four years in prison for running a Ponzi scheme.
A federal judge sentenced 75-year-old Carl Chen on Monday to 51 months behind bars, the term recommended by prosecutors.
Chen’s public defender sought a lesser sentence.
Chen pleaded guilty in March to wire fraud. Prosecutors say he defrauded investors of more than $3 million.
The former DuPont chemical engineer owned Chenmax Properties and was part-owner of Re/Max Sunvest Realty Co.
Authorities say Chen solicited $6.6 million from investors between 1991 and 2017 for real estate deals, promising them annual interest returns of 10% to 15%.
But after he began losing money, Chen in 2013 started using funds from new investors to pay off obligations to prior investors.