An Arizona man has been sentenced to 30 years in prison for orchestrating a Ponzi-style investment fraud scheme that defrauded over 100 victims, many of whom were Northern New Mexican residents, out of millions of dollars, according to the U.S. Attorney’s Office for the District of New Mexico.
From 2014 until 2022, John Lopez, 74, solicited investments through his organization, Personal Money Management Organization (PMMCO), claiming to have created a proprietary algorithm that delivered above-market returns. According to the DOJ, he utilized client funds to buy precious metals and make Ponzi-style payments to previous investors, totaling $6.1 million, in order to maintain the appearance of legitimate investment returns.
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According to the DOJ, Lopez raised around $24 million from investors and spent approximately $16 million on precious metals, which he hoarded in his house basement, office, hired storage unit, and even buried underground.
When federal officials confiscated PMMCO’s assets in November 2021, they recovered less than $15 million, which was less than the $39 million Lopez falsely stated was in management.
Despite the seizure, Lopez continued to seek new investors and falsify account statements. Lopez, according to officials, lived on a six-figure salary and presented himself as a successful investor with holdings that rivaled large financial institutions.
To keep the scheme afloat, he neglected to manage individual investments, lied about account balances, and actively discouraged large withdrawals, according to trial evidence.
Lopez violated his court-ordered release conditions at least five times after his indictment—two before his conviction and three afterward—including additional fraud, unauthorized financial transactions, refusal to turn over financial documents, and prohibited contact with victims and witnesses.
Before his sentence, federal officials conducted another search order on Lopez’s home, discovering boxes of silver coins worth around $350,000 concealed in the crawl area beneath the residence. Officials added the location of an additional $3 million in precious metals is now unclear.
Lopez was forced to pay $24 million in forfeiture as part of his sentencing. The DOJ stated a restitution order was still pending.
Lopez will be eligible for three years of supervised release after serving his sentence.
On April 15, 2022, the United States Attorney’s Office filed a separate civil forfeiture case, seeking to recover assets confiscated in November of 2021. The civil case is still being litigated, according to the DOJ.
