RALEIGH, N.C. (WNCN) — A former financial adviser was sentenced to 48 months in federal prison by a Raleigh judge Tuesday afternoon after being found guilty of orchestrating an elaborate mail fraud scheme over the course of 19 years.
Hugh Monroe Dyson, 67, was employed at two financial service firms in Raleigh between 1993 and 2012, and used his positions to promote a fictitious gas and oil limited partnership named “Keyport Oil” to investors, according to a press release from the U.S. Department of Justice.
Dyson collected hundreds of thousands of dollars in investment funds from clients and used the money to pay personal expenses and other investors, prosecutors said.
In order to perpetuate the scheme, Dyson used scissors, tape, and a copy machine to fabricate stock certificates, and he would occasionally issue “sales revenue” checks to Keyport Oil investors that would actually be paid with money collected from other victims, officials said.
The scheme eventually unraveled in 2012, with investors losing the entirety of their investments.
During the sentencing, Dyson made the argument that he should be sentenced to probation, rather than prison, to allow him to make restitution to his clients. The court denied the request on the grounds that since the scheme’s unraveling Dyson failed to make an effort to repay his victims, and paid nothing on a previous state court ruling on the same fraud, the press release said.
As part of the verdict, Dyson’s is also required to forfeit all remaining funds from the scheme, making restitution, and serve three years of supervised release after his prison sentence.