Brothers accused in $18M Ponzi Scheme found guilty - WNEM TV 5

Brothers accused in $18M Ponzi Scheme found guilty

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LANSING, MI (WNEM) -

Two brothers accused of running a Ponzi Scheme through their Michigan-based business have been found guilty by a jury. 

Thomas Mulholland, 59, of Midland, and his twin brother James Mullholland of St. Petersburg, Florida, were found guilty of eight felony counts each for charges related to criminal enterprise, working under false pretenses and fraud.

The brothers started their Lansing-based business, Mulholland Financial, in 1987. They bought real estate to be used as rental properties in several college towns.

At the height of their business, the brothers managed $22 million worth of property. After the recession in 2008, they filed for bankruptcy and raised almost $2 million from investors, promising them a 7 percent return.

Investigators found the brothers made no mention of the business struggles and consciously decided to purchase more property in an attempt to get themselves through the crash.

To do so, they reached out to even more investors and continued to promise a return even though they were using that money to pay off earlier investors.

“These men got themselves in a financial bind and instead of owning up to their mistakes they chose to defraud Michigan residents of their hard earned savings, said Attorney General Bill Schuette. “I hope that this verdict will provide some closure and relief to the victims of these men.”

In all, over 250 investors lost more than $18 million.

The Mulholland brothers are currently being held in the Ingham County Jail and will return for sentencing on August 31. 

Copyright 2016 WNEM (Meredith Corporation). All rights reserved. 

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