Minn. man gets 10 years in prison for Ponzi scheme

Published 9:31 am Wednesday, May 27, 2015

MINNEAPOLIS — A Minnesota man has been sentenced to 10 years in prison for stealing $20 million from investors as part of a Ponzi scheme.

Fifty-six-year-old Tyrone Herman of St. Anthony had pleaded guilty to a count of wire fraud in October. He was sentenced Tuesday in U.S. District Court in Minneapolis.

Court documents said  family and friends were among Herman’s 51 victims. According to the documents, Herman told investors he could buy small appliances at below-retail market rates, and that he could re-sell the items and investors would get their money back with a 30 percent rate of return.

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Prosecutors said Herman made no sales and created false invoices, and repaid some investors with Ponzi scheme proceeds.