Man to prison for ripping off NFL players w/ racing scheme
Nov 15, 2016 0:38:37 GMT -5
Post by Jon on Nov 15, 2016 0:38:37 GMT -5
Quite a tale
Ohio man sentenced to prison for ripping off NFL players in horse-racing scheme
cleveland.com
CLEVELAND, Ohio — An Ohio man who ripped off four NFL players in a horse-racing investment scheme, including former Cleveland Browns, and used the money to finance his lavish lifestyle was sentenced Monday to 21 months in federal prison.
Jonathan Pippin wept as he apologized for ripping off former Cleveland Browns players Chansi Stuckey and Reggie Hodges, former Browns and current Denver Broncos wide receiver Jordan Norwood and current San Diego Chargers running back Danny Woodhead.
Pippin, 30, of Logan said his lifestyle, his alcoholism and the need to sustain both caught up with him. U.S. District Judge Christopher Boyko scolded him for putting so much stock in appearances.
So now you're paying a price for trying to be a cool kid," Boyko said. "Steep price to pay."
The judge ordered Pippin to pay $358,370 in restitution and to undergo addiction treatment.
The U.S. Secret Service, IRS and the Northern Ohio Money Laundering Task Force began its investigation in 2012 when NFL security told them that players were being defrauded. Pippin pleaded guilty in July to two counts of wire fraud and one count of money laundering.
Pippin defrauded the players, some of whom he met while playing pickup basketball games at Cleveland State University, through PJH Horse Racing, a company he formed in 2011. He solicited people to invest in PJH under the pretense that he was working with a wealthy businessman and was going to purchase ownership interests from the businessman.
He told investors that they would receive a percentage of the winnings from the horses and that he had "stud rights" to a horse.
Pippin had no relationship with the businessman, identified in court records as "M.R." He created a fake email address for "M.R." and would use it to communicate with investors. When one investor questioned Pippin on this, he claimed the purchase was an "under the table" deal.
Pippin used investor money to pay personal expenses including gambling, strip clubs and the purchase of a Cadillac Escalade. His plea agreement said that he took thousands of dollars from people in exchange for tickets to sporting events and kept the money for himself.
Pippin was arrested in California in December. He was pulled over while driving a Lamborghini that he was paying thousands a day to rent.
"Really, a Lamborghini? $2,700 a day? Really?" the judge wondered aloud.
The judge read a report that said Pippin "enjoyed the taste of expensive champagne," and would down entire bottles daily. The bottles were worth between $500 to $8,000. Boyko said he didn't even know that champagne could be that expensive.
Federal public defender Carlos Warner said his client was incredibly bright. He said Pippin's parents, who sat in the viewing gallery, said their son could do anything.
"He'd be a magnificent lawyer if he put his mind to it," Warner said.
Hodges was the only victim to show up to Monday's sentencing. He said Pippin betrayed his family's trust. While that hurt, Hodges said his faith meant he had to try to forgive him.
"So Jonathan, I forgive you. Mom and Dad, I hope that you can help him," Hodges said.
Ohio man sentenced to prison for ripping off NFL players in horse-racing scheme
cleveland.com
CLEVELAND, Ohio — An Ohio man who ripped off four NFL players in a horse-racing investment scheme, including former Cleveland Browns, and used the money to finance his lavish lifestyle was sentenced Monday to 21 months in federal prison.
Jonathan Pippin wept as he apologized for ripping off former Cleveland Browns players Chansi Stuckey and Reggie Hodges, former Browns and current Denver Broncos wide receiver Jordan Norwood and current San Diego Chargers running back Danny Woodhead.
Pippin, 30, of Logan said his lifestyle, his alcoholism and the need to sustain both caught up with him. U.S. District Judge Christopher Boyko scolded him for putting so much stock in appearances.
So now you're paying a price for trying to be a cool kid," Boyko said. "Steep price to pay."
The judge ordered Pippin to pay $358,370 in restitution and to undergo addiction treatment.
The U.S. Secret Service, IRS and the Northern Ohio Money Laundering Task Force began its investigation in 2012 when NFL security told them that players were being defrauded. Pippin pleaded guilty in July to two counts of wire fraud and one count of money laundering.
Pippin defrauded the players, some of whom he met while playing pickup basketball games at Cleveland State University, through PJH Horse Racing, a company he formed in 2011. He solicited people to invest in PJH under the pretense that he was working with a wealthy businessman and was going to purchase ownership interests from the businessman.
He told investors that they would receive a percentage of the winnings from the horses and that he had "stud rights" to a horse.
Pippin had no relationship with the businessman, identified in court records as "M.R." He created a fake email address for "M.R." and would use it to communicate with investors. When one investor questioned Pippin on this, he claimed the purchase was an "under the table" deal.
Pippin used investor money to pay personal expenses including gambling, strip clubs and the purchase of a Cadillac Escalade. His plea agreement said that he took thousands of dollars from people in exchange for tickets to sporting events and kept the money for himself.
Pippin was arrested in California in December. He was pulled over while driving a Lamborghini that he was paying thousands a day to rent.
"Really, a Lamborghini? $2,700 a day? Really?" the judge wondered aloud.
The judge read a report that said Pippin "enjoyed the taste of expensive champagne," and would down entire bottles daily. The bottles were worth between $500 to $8,000. Boyko said he didn't even know that champagne could be that expensive.
Federal public defender Carlos Warner said his client was incredibly bright. He said Pippin's parents, who sat in the viewing gallery, said their son could do anything.
"He'd be a magnificent lawyer if he put his mind to it," Warner said.
Hodges was the only victim to show up to Monday's sentencing. He said Pippin betrayed his family's trust. While that hurt, Hodges said his faith meant he had to try to forgive him.
"So Jonathan, I forgive you. Mom and Dad, I hope that you can help him," Hodges said.