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Ponzi scheme brothers get up to 20 years

Aug 31, 2016

Twin brothers who ran an $18 million Ponzi scheme in Michigan are going to prison for up to 20 years.

James and Thomas Mulholland bought real estate, mostly in college towns, that they'd turn into rental houses.

They were doing pretty well, but they hit hard times during the recession.

So they started recruiting new investors, promising big returns and hiding their financial problems. But in reality, the state Attorney General says, they were using that new money to pay back other investors.

They were convicted of eight felonies this month, and were sentenced to 10 to 20 years.

Some money was returned to investors when the brothers filed for bankruptcy.

Now the state's seeking restitution, but because of the statute of limitations, it can only go after a fraction of what investors lost.