An Allentown, Pennsylvania, attorney has been charged for his role in a $2.7 million investment fraud scheme that victimized his law clients, according to a superseding indictment that was unsealed Monday.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney William M. McSwain of the Eastern District of Pennsylvania and Special Agent in Charge Michael J. Driscoll of the FBI’s Philadelphia Field Office made the announcement.
Todd H. Lahr, 59, of Nazareth, Pennsylvania, was indicted by a federal grand jury in the Eastern District of Pennsylvania on one count of conspiracy to commit securities fraud and wire fraud, two counts of securities fraud, and four counts of wire fraud.
According to the superseding indictment, from 2012 through 2019, Lahr conspired with others to perpetrate a securities fraud scheme targeting his own law clients, which involved the fraudulent sale of the securities of two entities, THL Holdings LLC and Ferran Global Holdings Inc. Lahr used investor funds to finance his own lifestyle, paying his home mortgage, his child’s school tuition, utility bills and other personal debts. He allegedly perpetuated the scheme by using money that he received from new investors to pay money owed to other investors in the scheme.
Total investor losses are estimated to be over $2.7 million, according to the indictment.
An indictment is not a finding of guilt. It merely alleges that crimes have been committed. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The FBI investigated this case. Trial Attorney Philip Trout of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael J. Rinaldi of the Eastern District of Pennsylvania are prosecuting the case.
The department appreciates the substantial assistance provided by the U.S. Securities and Exchange Commission.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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