SEC accuses suburban Philly man of $16M Ponzi scheme involving 140 investors

SEC accuses Pa. man of $16M Ponzi scheme

PHILADELPHIA — A suburban Philadelphia man described by authorities as a “securities fraud recidivist” ran a $16 million Ponzi scheme through several business entities and hedge funds he controlled, federal regulators said in a complaint filed Tuesday.

Robert Stinson Jr., 55, of Berwyn spent the money so he and family members, also named as defendants, could enjoy yachts, travel, pricey restaurants and other luxuries, and to repay early investors who were promised returns of 10 percent to 16 percent, the Securities and Exchange Commission said.

Stinson ran the scheme since at least 2006 and took in $12 million in a recent 13-month period and $2.3 million from 30 investors in the month of May alone, the SEC said in the complaint.

Stinson controls business entities including Life’s Good Inc. and Keystone State Capital, along with at least four hedge funds, the regulators said. The FBI conducted raids at some of the business locations Tuesday, an FBI spokesman said.

Stinson did not immediately return a message left at the Life’s Good office in downtown Philadelphia. He does not have a listed home telephone number.

The SEC was not commenting on the case, according to Brendan P. McGlynn, assistant regional director of the Philadelphia office.

According to the complaint, Stinson misled investors about the nature of the investments and failed to disclose his criminal and bankruptcy history. Stinson pleaded guilty to felony bank fraud in 2000 in eastern Pennsylvania, according to federal court records.