Former Belmont Man Convicted Of $6M Investment Fraud Scam

BELMONT, MA – A former Belmont resident was convicted in federal court of running a decade-long Ponzi-style investment scheme during which he defrauded 15 investors of over $6 million, the U.S. Attorney's Office said. John "Jack" Cranney, 76, of El Paso, TX, was found guilty of three counts of wire fraud, 12 counts of mail fraud and three counts of money laundering following a two-week trial.

He faces up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss for the mail and wire fraud convictions and no more than 10 years in prison, three years of supervised release and a fine of $250,000 or twice the amount of the criminal gains for the money laundering convictions.

According to authorities, Cranney solicited money from people under the guise that he would invest it in an investment fund or a retirement plan that he claimed he managed. Instead of investing the money, Cranney spent it on his own bills and debts to bankroll his declining health and nutrition products distributorship, the USAO said.

From 2001 to 2012, he created shell companies that sounded like investment funds to carry out his scheme. He also set up a sham Employee Stock Ownership Plan to convince victims to transfer their IRA and 401k retirement funds to him.

It ultimately collapsed in early 2012 when he could not get new investments and initial investors began demanding their money back.

Cranney will be required to wear an electronic monitoring device and limit his travel to El Paso County until his sentencing on Aug. 2.

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