Christopher Dillon, 52, of Lancaster, NY, pled guilty on Thursday, November 10, 20166, to conspiracy to commit wire fraud. The charge carries a maximum penalty of 20 years and a fine of $250,000.
According to the court documents, between May 2010 and November 2013, Dillon conspired with others to fraudulently obtain money and property from investors. As part of the scheme, Dillon and co-conspirator Gilbert Lynagh formed two companies – i2i Capital LLC and i2i Settlement Partners LLC – which were incorporated in Delaware but listed a business address in Lancaster, NY.
Thereafter, Dillon, Lynagh and other conspirators caused 27 victims to invest over $5,000,000 in i2i Capital and/or i2i Settlement Partners. False and fraudulent representations were made to victims regarding the nature of the investment and the associated risks, durations and rates of return. Victim funds were wire transferred from the victims bank accounts to bank accounts controlled by Dillon and Lynagh at Alliance Bank in Oneida, NY. The majority of victim funds were used by Dillon for personal use. None of the victims received the promised return on their investments, and none saw the return of their original investment funds as promised by Dillon, Lynagh, and other members of the conspiracy. As a result, at least five investors suffered substantial financial hardship by losing retirement or other savings or investment funds.
Gilbert Lynagh was convicted in July 2016 for his role in the conspiracy.
Sentencing is scheduled for March 13, 2017, before Judge Arcara.