Former Belmont Resident Arrested in $6 Million Ponzi Scheme

A former Belmont resident was arrested and charged with a $6 million fraudulent investment operation.

John William Cranney, 73, was arrested in El Paso, Texas, on Monday after being charged in U.S. District Court in Boston.

He was charged with four counts of wire fraud, 16 counts of mail fraud and three counts of money laundering after he allegedly defrauded at least 15 investors of more than $6 million, according to a U.S. Attorney’s Office press release.

Cranney solicited money from people whom he had personal and business relationships with and guaranteed them a specific rate of return, the U.S. Attorney’s Office reported.

Instead of investing their money, Cranney spent it on personal and business expenses and to repay other victims and creditors, the indictment said.

According to the indictment, Cranney directed investors to send their money into shell investment entities called “Cranney Capital I” and “Cranney Capital III.” He also sent investors false reports of earning and total account balances.

IRS Criminal Investigation investigated Cranney’s money laundering charges.

Cranney faces maximum sentences of 20 years in prison for mail and wire fraud as well as 10 years in prison for money laundering.

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