Center resident pleads guilty to federal fraud charges
By Michael Pound
A Center Township financial planner has pleaded guilty to federal charges connected with the theft of $2.5 million from 25 different people to fuel his gambling addiction, the U.S. Attorney's office in Pittsburgh said.
John D. Wosotowsky, 51, of 843 Monaca Road, pleaded guilty to charges of mail fraud and filing a false income tax return in U.S. District Court on Thursday.
Prosecutors said Wosotowsky, an employee of MetLife Securities, built a pyramid scheme in the last decade, convincing investors to pay into a product he said was a part of the MetLife system but was actually a series of accounts he controlled. Using fake changes of address and requests for disbursements, Wosotowsky was able to build a substantial personal account, but he never invested money given to him by others.
Wosotowsky also fabricated quarterly and monthly statements and failed to report the fraudulent income on tax returns.
Wosotowsky, who was freed on bond following Thursday's guilty plea, could face up to 23 years in prison, a fine of $500,000, or both. He is scheduled to be sentenced Jan. 31.
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