© 2021 MICHIGAN RADIO
91.7 Ann Arbor/Detroit 91.3 Port Huron 104.1 Grand Rapids 91.1 Flint
Play Live Radio
Next Up:
0:00
0:00
Available On Air Stations
News

Ponzi scheme brothers get up to 20 years

rolls of cash
Flickr user Pictures of Money
/
http://michrad.io/1LXrdJM
The Mulholland brothers ran an $18 million Ponzi scheme, the AG says

Twin brothers who ran an $18 million Ponzi scheme in Michigan are going to prison for up to 20 years.

James and Thomas Mulholland bought real estate, mostly in college towns, that they'd turn into rental houses.

They were doing pretty well, but they hit hard times during the recession.

So they started recruiting new investors, promising big returns and hiding their financial problems. But in reality, the state Attorney General says, they were using that new money to pay back other investors.

They were convicted of eight felonies this month, and were sentenced to 10 to 20 years.

Some money was returned to investors when the brothers filed for bankruptcy.

Now the state's seeking restitution, but because of the statute of limitations, it can only go after a fraction of what investors lost.