Friday morning, Eric Aronson, the founded and head of Permapave Industires LLC and Permapave USA Corporation, was sentenced to 124 months’ imprisonment to be followed by three years’ supervised release, and ordered to forfeit $26 million in criminal proceeds. Restitution amount to be determined. Aronson pleaded guilty to securities fraud on September 12, 2014.
Aronson was charged with securities fraud for orchestrating a multi-million dollar Ponzi scheme which, from approximately August 2006 to December 2010, defrauded more than 200 investors out of approximately $26 million. He and his co-conspirators issues promissory notes to investors and promised to use the proceeds to finance shipments of Permapave paving stones from Australia to the United States. In reality, they operated a Ponzi scheme, whereby some investors were paid returns on their investment from the funds Aronson obtained from other defrauded investors. Aronson converted millions of dollars of investor funds for personal expenditures, including watches, jewelry, and automobiles.