Former Bristol Resident Admits Operating $1.8 Million Investment Scheme

polishclubbristolHARTFORD — Stephen Goodrich, 57, of Rocky Hill recently pleaded guilty in Federal Court to one count of mail fraud and one count of subscribing to a false tax return.  The charges stem from Goodrich’s operation of an investment scheme that defrauded investors out of more than $1.8 million.

According to court documents and statements made in court, Goodrich formerly resided in Bristol where he conducted an investment business using the name Goodrich Financial.

Although Goodrich was not a licensed or registered investment adviser, he provided a business card to some investors that falsely represented that he was licensed to conduct an investment business.

Beginning in approximately 2006 and continuing to approximately November 2012, Goodrich engaged in a scheme to defraud individuals who had provided him with investment funds by failing to invest the funds as represented, and by using some of the investment funds for his personal use.

At times, Goodrich also used new investor funds to return the principal investment to older investors as is often done in Ponzi schemes.  In order to prevent his investors from becoming aware of the scheme, Goodrich provided written performance summaries to his investors that falsely represented the value of their investments.

More than ten investors collectively lost more than $1.8 million as a result of this scheme.

During the years 2007 to 2011, Goodrich used more than $600,000 of the investors’ funds for his personal use without disclosing this income on his federal tax returns.

As a result, Goodrich owes $239,443 in additional federal taxes, plus interest and penalties.

Goodrich is scheduled to be sentenced on December 30, 2014, at which time he faces a maximum term of imprisonment of 23 years, a fine of up to approximately $3.6 million and an order of restitution.

Goodrich was released on a $25,000 bond.

About these ads