COLLIN COUNTY (CBSDFW.COM) — A McKinney man who ran a Ponzi scheme has been sentenced to 5 years in federal prison and ordered to pay $13 million in restitution to his victims.
Patrick Howard – owner of Insured Liquidity Partners CGF I, Insured Liquidity Partners CGF II, and Capital Ventures, LLC – pleaded guilty to securities fraud in November 2020. He was sentenced on May 20 and taken into custody immediately after the hearing.
In plea papers, Howard admitted to running a Ponzi-type scheme, recruiting more than 100 investors to purchase $13 million in membership units for $50,000 apiece. His companies promised investors 12% annual returns, paid quarterly, and “insured liquidity.”
But instead of properly investing the money, the companies issued phony account statements and paid any investors who elected to receive their…