GREENBELT, MD—A Maryland man has been sentenced to more than six years in federal prison for his role in a $28 million Ponzi scheme involving “1st Million Dollars” wealth management company.
U.S. District Judge Theodore D. Chuang sentenced Arley Ray Johnson, 63, of Bowie, to 78 months in federal prison, followed by three years of supervised release, for conspiracy, wire fraud, and securities fraud charges. Johnson was convicted on September 29, 2022, after a 10-day trial.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Matthew R. Stohler of the United States Secret Service – Washington Field Office; and Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service – Washington.
By Spring 2019, 1st Million’s accounts were often overdrawn by hundreds of thousands of dollars, and some of the checks 1st Million sent to pay investors monthly returns were returned by the bank due to insufficient funds. Nevertheless, Johnson and Frimpong continued to solicit funds from existing investors, as well as new investors, and failed to tell any of these potential investors of 1st Million’s financial problems. Ultimately, the scheme collapsed in May 2019 and hundreds of 1st Million investors collectively lost millions of dollars.
Over the course of the conspiracy, Johnson and his co-defendants persuaded or attempted to persuade more than 1,200 victims from across the United States to provide them with wire transfers, checks, and cash totaling more than $28 million, from numerous victims. The evidence proved that although the victims were promised tremendous returns on their investments, Johnson and his co-conspirators did not invest any of the money, instead using it to fund their own lifestyles and to perpetuate the fraud scheme.
John Erasmus Frimpong, 42, of Upper Marlboro, previously pleaded guilty to a wire fraud conspiracy, conspiracy to commit securities fraud, and to securities fraud. Judge Chuang has scheduled sentencing for Frimpong on February 10, 2023, at 9:00 a.m.
Jali fled the United States in May 2019, but has since been arrested in South Africa.
Separate civil actions filed against Johnson and his co-defendants by the Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission remain pending.
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