This is an archived article that was published on sltrib.com in 2014, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.
A St. George man was sentenced to five years and three months in federal prison on charges he operated a Ponzi scheme that took in $21 million from more than 50 victims by promising returns of 5 percent a month.
U.S. District Judge Robert Shelby also ordered Arvin Lee Black II to pay restitution of $13.8 million after his guilty plea to wire fraud and money laundering.
Black ran a stock day trading company called Sole Group LLC through which he enticed investors with promises of returns of as much as 5 percent a month with little risk.
Instead, Black relied on taking in money from new investors that he used to pay off earlier ones in what is known as a Ponzi scheme. Black returned about $7 million to investors, claiming they were legitimate returns. He also used funds for personal expenses, including transferring money from investors directly into a personal account.
Black is to serve a 30-day sentence in an Arizona case before reporting for his federal prison sentence on July 1.