A Norwalk accountant recently pleaded guilty to operating a Ponzi scheme, defrauding an array of investors of more than $1 million.
According to the office of Deirdre Daly, U.S. Attorney for the District of Connecticut, James Neilsen was a certified public accountant until he became inactive in 2012. Starting in 2006, Neilsen allegedly solicited and received more than $1 million from numerous individuals to invest with Ulysses Partners, LLC, an entity in which he was a partner and chief financial officer, or Neilsen Financial Services, which he owned and controlled.
According to the district attorney, Nielsen promised investors a guaranteed rate of return of 9 to 10.5 percent on their investment. He also told investors Ulysses Partners or Neilsen Financial Services would invest their money in businesses or business ventures. Instead, he used much of the money to pay back earlier victim investors and to make various personal expenditures.
As part of the scheme, Neilsen also submitted fake account statements and sent e-mails to multiple victims designed to keep them involved in the enterprise.
In total, prosecutors said Neilsen defrauded investors of $1.7 million. Victims included his accounting clients, clients of his tax preparation business as well as friends and members of his family including his 93-year-old great aunt and child beneficiaries of a trust established after their father”™s untimely death.
Neilsen was arrested June 18 and was released on a $250,000 bond. He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny Dec. 22, at which time he faces a maximum prison sentence of 20 years. Neilsen agreed to pay more than $6.2 million in restitution, which includes additional monies owed to investors.
