Norwalk Man's Ponzi Scheme Defrauds Family, Friends

A Norwalk man pleaded guilty to running a Ponzi scheme that defrauded investors of more than $1.6 million.

James Neilsen, 55, pleaded guilty to one count of wire fraud in U.S. District court.

He was a certified public accountant and solicited money since at least 2006 to invest in Ulysses Partners LLC., which is where he a partner and CFO. He was also soliciting money for Nielsen Financial Services, which he owned and controlled, according to the U.S. Attorney District of Connecticut office.

He promised rate of returns between nine and 10.5 percent. Nielsen told investors he would invest in businesses or business ventures, but instead the money went back to paying early victim investors or for personal expenditures.

His victims included clients of his tax preparation business, friends and even family members. He was arrested on June 18.

Neilsen is scheduled to be sentenced on Dec. 22 and he faces a maximum term of imprisonment of 20 years. He has agreed to pay restitution of $6.27 million.

This matter is being investigated by the Federal Bureau of Investigation, the Greenwich Police Department and the Connecticut Department of Banking. The case is being prosecuted by Assistant U.S. Attorney David T. Huang.