A Cambria County investment advisor has pleaded guilty in a $4.5 million fraud scheme.
Lilly resident, Douglas Simanski, 53, pleaded guilty in federal court to five charges, including securities fraud, wire fraud, and filing false income tax returns.
Between February 2002 and May 2016, Simanski, an investment advisor and broker, fraudulently obtained approximately $4.5 million from various investors. He fabricated “Tax Free Investment” contracts and “fake CDs” which listed guaranteed rates of return and payouts, and used the documents to solicit investors.
Simanski used portions of the invested funds to pay “returns” to other investors to make it appear their investments were legitimate. He also used a portion of the funds to purchase personal items and to fund personal home improvement projects, and placed some of the funds into a personal E*Trade account.
The United States also presented information to the Court that Simanski filed false income tax returns for 2012, 2013, and 2014.
Simanski is scheduled for sentencing on April 4, 2019.