WFMJ.com News weather sports for Youngstown-Warren OhioLowellville man pleads guilty to Ponzi scheme

Lowellville man pleads guilty to Ponzi scheme

YOUNGSTOWN, Ohio - A man from Lowellville accused of running an elaborate Ponzi scheme pled guilty Thursday in federal court in Youngstown.

David Olson changed his plea from not guilty to guilty to two counts of federal fraud and money laundering for his business A&O Companies. Victims from his Ponzi scheme say it cost them their life savings.

"He said you could retire at 55," remembered Robert Perry of Lowellville. "I gave up a job that I had seven years left that I was making $20 an hour."

Perry invested with Olson, a man he'd known for years as a successful businessman.

"We were in the booster club together, church, everything," Perry said. "Helped him run his campaign for board of education, he served Communion at church. We were all friends, we all looked up to him. He was a nice guy."

But that cost Perry. "Cut my income in half," he said. "It affects my wife, she has to keep working."

Ellie Heckert is related to Olson by marriage. She came to court for her parents, who were also victims

"I'm working, trying to help my mom and dad pay their bills," Perry said. "Because they have nothing. So it's hard."

Olson and his business partner, Edward Allen, are accused of a $14 million dollar Ponzi scheme that solicited local investors to fund real estate investments, and then only paid back a fraction of their money.

Carlos Warner, the assistant federal public defender representing Olson, issued this statement: "David is remorseful and regrets the loss caused by A&O Companies. He remains committed to doing everything within his control to help those who have lost so much. It is his hope that his guilty plea, cooperation, and eventual sentence will aid in the recovery of funds and that it will also begin the healing process for the victims of A&O Companies. "

Olson could get twenty years in prison on each count.

"I just want justice served," Heckert said. "And I hope he gets the maximum."

"If he wouldn't have gotten caught there'd have been more victims," added Perry.

Edward Allen is scheduled for trial April 16th.