The U.S. Attorney’s office for the State of Connecticut said John H. Goldsmith, 57 of Shelton, pleaded guilty Monday in federal court to one count of securities fraud involving a $300,000 investment fraud scheme.
Goldsmith was arrested in December and was facing charges on two counts of fraud. He initially pleaded not guilty but changed his plea to guilty this month.
The scam, according to prosecutors and the FBI, evolved over a five year period. At first, Goldsmith told an investor he was starting a magazine geared to teens and was arranging for a deal to market it at schools. Then he told the investor, the magazine idea was acquired by a company and now it was going to be a video sharing service in which teens would compete against each other. The final allegation came after Goldsmith allegedly told investors Sallie Mae bought his company through a subsidiary and that Goldsmith could now buy shares of Sallie Mae at deep discounts and was taking money to buy the shares from those investors.
He used the money to pay bills, buy toys and even made a donation to Little League with it.
Goldsmith met his alleged victims through personal friendships and work on a Trumbull election. He faces up to 20 years in prison and a fine of $5 million. Goldsmith will be sentenced on May 21.
If it sounds too good to be true, it probably is! Maybe you should have done your homework before investing THAT much money into something sight unseen. Don’t put all the blame on Goldsmith. In this modern, technological age, it’s easy to do a little research before backing up an investment idea. I understand that you may feel frustrated, disappointed, scared and angry, but you are also a part of the equation. Remember, when you point a finger at someone else, you have 3 fingers pointing back at yourself. There is no real way to get rich quick. If there were, everyone would be doing it. I’m sorry you had to learn such a difficult lesson and you lost your shirt in the process. Next time, make your money the old fashioned way… earn it and lose it the old fashioned way by spending it! “Today the greatest single source of wealth is between your ears.” ~Brian Tracy
Goldsmith is an evil monster! He preyed on his close friends and family and destroyed lives and marriages. This is not about a guy stealing a $30,000 car where nobody’s live’s are destroyed. He stole over $300,000. I’m a victim, and have to sell my home and move from CT, my lifelong home, to a less expensive part of the country to even survive!