RENO, Nev. (MyNews4.com & KRNV) -- A former bank financial advisor, who defrauded six people of over $2 million during 2010 and 2011, has been sentenced to ten years in prison, five years of supervised release and ordered to pay restitution to the victims.
Reno resident Gary H. Lane, 60, pleaded guilty to 12 counts of mail fraud and five counts of attempt to evade or defeat tax in September 2013. Lane was employed as a financial advisor with Bank of America Investment Services, which later merged with Merrill Lynch, until March 2011. During the course of Lane’s employment, he allegedly developed a scheme to entice persons to invest monies with him through the use of an E-Trade account rather than through normal bank procedures.
Lane told the investors that their funds would be invested in U.S. Treasury Bonds which would pay better than six percent interest and would mature in two years. In actuality, Lane never purchased any U.S. Treasury Bonds with the victims’ monies. In fact, there were never any United States Treasury Bonds that existed with a rate of return of greater than six percent and a maturity period of less than two years.
“Beware of persons who offer better interest rates than traditional sources,” said U.S. Attorney Daniel G. Bogden. “They prey on the elderly and unsophisticated and will use numerous methods to steal your money. If you do not know if an investment opportunity is legitimate, it is always better to investigate the person or company first before turning over any money to them.”
Lane defrauded approximately six people of over $2 million between January 2010 and March 2011. Lane also allegedly filed false and fraudulent individual tax returns for the years 2006 through 2010, substantially understating his income and tax due and owing to the IRS.