MONTREAL — Putative financial adviser Perry Newman, who defrauded his Orthodox Jewish clients of more than $6 million, has been sentenced to five years in prison.
Newman, 51, pleaded guilty to all nine charges against him of fraud, theft and forgery. He was sentenced Nov. 30.
Between 1996 and his arrest in 2010, Newman ran a Ponzi scheme under the guise of a company called Dover Financial.
The court heard how Newman targeted Orthodox Jews, most of them living in New York, playing up his own religious background which included education at a religious institution in his native England.
He victimized about a dozen people, the most seriously hurt was Edith Olanoff, formerly of New York and now living in Israel, who went to the police.
Newman used his “Jewish Orthodox roots to convince investors of his honesty, his high level of ethical standards, and his financial capacity,” a document entered by bankruptcy trustee RSM Richter stated.
The evidence showed that he and his wife enjoyed a lavish lifestyle including a fine home in Hampstead, several vacations a year and educating their three sons at prestigious American colleges.
The forgery charge stems from Newman’s practice of sending out regular statements on the doctored letterhead of a reputable U.S. brokerage firm.
Civil proceedings are underway against his wife and sons, as well as clients who profited from the scheme, to recover some to the money.