BEAUMONT, Texas (AP) — A Dallas man accused of a running Ponzi scheme defrauding investors of more than $400 million has been sentenced to 20 years in prison.
Joseph Blimline was sentenced by a Beaumont federal judge after a sentencing hearing Thursday. Blimline pleaded guilty two years ago to mail fraud.
Authorities say Blimline began a Ponzi scheme in Michigan in 2003. Blimline promised inflated rates of return on investments. He used new investor payments to pay previous investors and collect money himself.
Blimline would move his scheme to Texas in 2006. Authorities say he ran a fraudulent firm that collected more than $400 million from about 7,700 investors who were being duped.
The 36-year-old Blimline has been ordered to surrender to U.S. Marshals by May 17.