By Hayleigh Gowans
Staff Writer
James P. Griffin, a Cazenovia businessman who is the CEO of 54Freedom Companies, was found guilty yesterday in federal court for defrauding nearly $2 million from investors since 2009.
On July 18, Griffin was found guilty on all 23 counts of mail fraud, wire fraud and money laundering at the United States District Court Northern District of New York, and faces a sentence of up to 30 years in federal prison. Griffin was found guilty of laundering nearly $2 million in two schemes to defraud investors under the false pretense that they would gain financially. One scheme amounted to $1.6 million and the second was $370,000.
Judge Frederick Scullin presided over the case in which prosecutor U.S. Assistant Attorney Edward Bronton stated that since 2009, Griffin had secured donors to purchase “54 Freedom Charitable Gift Annuities” under the false pretenses that the annuities from the investment would provide guaranteed lifetime income for the donor. The original indictment was issued on July 22, 2015 and states Griffin, “devised and intended to devise a scheme and artifice to defraud person by soliciting investments under a false pretense and concealing, disguising and failing to disclose material information and obtain money and property by means of material false and fraudulent pretenses.”
The indictment stated donors of the annuity received intermittent payments until January 2013 but no payments had been issued since. Griffin also served as an officer and agent of 5 Ledyard Corporation and Money Ins., which have offices in Cazenovia.
According to the office of Judge Scullin, Griffin is set to be sentenced on Nov. 15, 2016.
Griffin also faces charges from the federal Securities and Exchange Commission for defrauding investors nearly $8 million with James Wolle, 54Freedom’s Chief Financial Officer and treasurer.
