Philly Businessman Jailed For $1.6M Ponzi Scheme

PHILADELPHIA – A Philadelphia businessman man has been sentenced to six years, six months in prison for running a ponzi scheme that cheated his clients out of more than $1.6 million, First Assistant U.S. Attorney Jennifer Arbittier Williams announced. Carl Frederic Sealey, 43, of Cinnaminson, New Jersey, previously pleaded guilty to conspiracy to commit wire fraud and wire fraud.

He was also ordered to repay $1,508,325 in restitution to the victims of his scheme. Sealey was immediately taken into custody to begin serving his sentence.

Sealey is the ex-Chairman and Chief Executive Officer of Global Standard Industries (GSI) and SEK Industries (SEK). He claimed that GSI was a multi-national private equity investment firm with more than 500 employees that specialized in investments of at least $50 million, according to authorities. That supposedly included more than $15 billion in managed domestic assets, and another $33 billion offshore.

Almost every investor was led to believe that the investments were risk free and that they would receive their money back with 10 percent interest within 90 days, according to authorities. He also led investors to believe that their "deal" had been delayed and that they could get their money back quicker if they invested additional money for other "deals" that GSI was involved with.

However, GSI really only had offices in Philadelphia and New York City, according to authorities. The company didn't employ 500 people, and there were never any real estate closings or business takeovers underway by anyone at GSI. Instead, Sealey stole the money from his investors and used it for his own personal expense, including a personal driver, hotel accommodations, restaurants, spa services, retail shopping, and other personal expenses.

"Individuals trust investment advisors with their life savings and their economic well-being," Williams said. "This defendant blatantly betrayed that trust by making false promises to investors with the ultimate goal of stealing their money and living the high life with their hard-earned savings. The sentence imposed in this case, and the order requiring the defendant to begin serving his sentence immediately after the hearing, reflect the seriousness of the charges."

"Carl Sealey invented offices, employees, and business deals that didn't exist, in order to win investors' trust," said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. "When people bought his sales pitch, he promptly sold them out, funding his extravagant lifestyle with their money. The FBI is gratified to help bring to justice the perpetrator of such blatant fraud."

The investigation was led by agents from the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Anita Eve.

Story by Anthony Bellano

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