A former investment advisor from Marietta, Georgia has been hit with a nearly eight-year federal prison sentence for operating a colossal Ponzi scheme that swindled over 400 investors, leaving many penniless. John J. Woods, who is 58, was sentenced after a 13-year con that defrauded investors to the tune of over $49 million, according to the U.S. Attorney's Office for the Northern District of Georgia.
Claiming to provide profitable returns through a fund called "Horizon Private Equity," Woods, acting as a fiduciary, lured investors, including retirees, seniors, and military veterans, with the allure of six to seven percent returns on their investments. In a statement obtained by the Justice Department, U.S. Attorney Ryan K. Buchanan said Woods "abused the trust of his victims, who lost their life savings and retirement accounts due to his greed."
The scheme enticed investors with minimal risk propositions, while monies raised from newcomers were, in fact, being used to pay off earlier investors. Funds from new investors were not invested as promised, but rather misappropriated for other purposes, including Woods' stake in a baseball team, buying it in his name, according to a Justice Department announcement. Monthly statements to investors were designed to mislead, hiding the truth that Horizon investments were far from covering the promised returns.
Woods, got caught by the SEC in 2021, faced justice at the hands of U.S. District Judge Sarah E. Geraghty, who sentenced him to seven years and eleven months in prison, to be followed by a three-year supervised release. He is also required to shell out restitution to his victims, with an amount to be determined at a hearing scheduled for April 15. Keri Farley, Special Agent in Charge of FBI Atlanta, warned in a statement about the severe impact of illegal investment activities like Woods’ Ponzi scheme and hoped the sentence would "send the message that the FBI will not tolerate individuals who offer victims false promises and take advantage for their own personal benefit."
The harrowing financial collapse saw investors from at least 20 different states suffering losses exceeding $110,000,000 in principal investment amounts, with more than $49 million gone owing to Woods's fraudulent actions. The Federal Bureau of Investigation spearheaded the investigation that led to Woods's downfall with assistance from the SEC. The prosecution was handled by Assistant U.S. Attorneys Angela Adams and Stephen H. McClain. Further developments in the case can be followed through the U.S. Attorney's Public Affairs Office or the official website of the U.S. Attorney’s Office for the Northern District of Georgia.
