Apr.05, 2010

Donald Anthony Young, a Chester County Man, faces charges on mail fraud and money laundering. Police claim that the man cheated investors out of $26 million dollars in a ponzi scheme he ran from his fraudulent businesses.

The Pennsylvania man ran the scheme through a number of phony businesses such as Acorn Capital Management II LP and Acorn II LP. Young approached investors and gained their trust. He promised to invest their money in large-well established companies to obtain a small profit. He managed to collect $95 million dollars, which he deposited in an investment fund at Wachovia bank.

The suit against Young alleges he diverted $26 million dollars of the money in the fund for personal uses. Acorn management II LP was registered with the SEC and is subject to Securities and Exchange commission regulations. Homes used the money to purchase a new home, go golfing, tennis clubs and farm equipment. The Kennett Square man showed his clients fictitious financial reports which showed a larger balance

If a jury convicts Donald Young, he can face up to 30 years in prison and five years supervised release. He will also be ordered to pay nearly $27 million dollars in restitution.