According to the U.S. Attorney’s Office for the District of South Carolina, the mastermind behind a $300 million Ponzi scam targeting vulnerable military veterans was sentenced to 10 years in prison.
Scott Kohn, 68, of Newport, California, was indicted in 2019 for the fraudulent plan he used to support his extravagant lifestyle from his $4.8 million estate with expansive views of the Pacific Ocean.
Along with accomplices Kraig Aiken, David Kenneally, and Joseph Hipp, the con artist was charged with conspiracy to conduct wire fraud and mail fraud for his attempt to defraud veterans with loans secured by their pensions that included exorbitant interest rates.
In addition to the prison sentence, Judge Bruce Hendricks ordered Kohn to forfeit $297 million and to serve three years of supervised release after his release. Between 2011 and 2018, when the fraud fell, his firm gave veterans and retirees with financial advances that were later reimbursed by their pensions, with $310 million put into five accounts controlled by Kohn and his accomplices.
According to The Greenville News, Kohn pocketed at least a third of this staggering figure. Reportedly, he also spent vast sums on fancy automobiles and artwork.
The financially vulnerable traders were not informed that the interest rates on the advances may exceed 240 percent per year. The first capital came from investors who were promised returns of up to 8% on their investments. Up to 13,000 veterans were enrolled in…
