Westfield man gets 5 years in prison, must pay $1.5M in restitution for wire fraud, money laundering

INDIANAPOLIS (WISH) — A Westfield antheral volition service 5 years successful situation aft helium was convicted of ligament fraud and wealth laundering. He volition besides person to wage much than $1.5 cardinal successful restitution.

George Blankenbaker Jr., 56, of Westfield, was charged with ligament fraud and wealth laundering successful April. The charges came aft an probe by the Internal Revenue Service Criminal Investigation.

Investigators learned Blankenbaker created 3 concern entities betwixt May 2008 and August 2016 successful bid to usage the businesses successful a Ponzi and wealth laundering scheme.

The businesses helium created were Stargrower Commercial Bridge Loan Fund 1 LLC, Stargrower Asset Management LLC, and EDU Holding Trust.

Blankenbaker convinced much than 100 radical to put much than $10 cardinal successful his businesses. Authorities accidental Blankenbaker told investors helium was going to usage their wealth to concern nutrient shipping containers. Instead, helium utilized that wealth to marque involvement payments and instrumentality of rule payments to different investors.

He besides utilized the wealth to wage for idiosyncratic expenses.

In total, 34 investors mislaid much than $1.4 cardinal successful that scheme.

Blankenbaker besides utilized EDU Holding Trust to acquisition beingness security policies and led investors to judge they were beneficiaries of the policies. Authorities accidental helium deposited a $2.5 cardinal cheque into an relationship for EDU Holding Esc aft 1 security argumentation matured. He lone gave immoderate of those funds to the investors and utilized immoderate of the wealth for concern and idiosyncratic expenses.

One capitalist successful that strategy mislaid much than $100,000.