Former Maui Residents Found Guilty in $26 M Ponzi Scheme

File photo by Wendy Osher.

By Maui Now Staff

Two former Maui residents were found guilty of fraud in connection with their operation of a $26 million Ponzi scheme, according to the US Justice Department.

The verdict against George Lindell, 67, and Holly Hoaeae, 40, was handed down in Honolulu US District Court on Wednesday, May 27, following a 25-day trial spanning over seven weeks.

Both defendants are now housed at the Federal Detention Center in Honolulu.

A federal jury found the two guilty of eight mail fraud and two wire fraud charges. Lindell was also convicted of four counts of money laundering.

Justice department officials say 166 people invested in the scheme called “The Parking Lot” and lost a net amount of $8.9 million dollars.

According to the Justice Department, the scheme was run in connection with the operation of their business, “The Mortgage Store” in which they issued promissory notes promising to pay guaranteed rates of return.

During the scheme, justice officials say “Lindell built a $3.5 million dollar residence above Lahaina in large part with investor funds and Hoaeae used hundreds of thousands of dollars in investor funds to support her personal lifestyle including trips, automobiles and payments of extensive credit card debt.”

Lindell and Hoaeae face up to 20 years in prison on each of the ten mail and wire fraud offenses when they are sentenced on September 9, 2015.  Justice officials say Lindell also faces up to 10 years in prison on each of the four money laundering offenses.

The department notes that each charge also carries a potential fine of up to $250,000.