On Friday, it was announced that the founders and principals of Inofin Inc. had been sentenced on fraud charges in relation to the solicitation of investments that resulted in the losses of more $11 million to investors. The company served as a vehicle finance company based out of Rockland, Massachusetts. 55-year-old Michael J. Cuomo of Plymouth and 67-year-old Kevin J. Mann of Marshfield were sentenced to 48 months and 42 months in prison respectively.
Both men will also be required to serve three years of supervised release. In May of 2017, the defendants pleaded guilty to one count of conspiracy to commit mail and wire fraud, one count of wire fraud and three counts of mail fraud. Between 1994 and February of 2011, Mann and Cuomo owned and operated Inofin. The company provided loans to used vehicle buyers who were unable to qualify for traditional financing.
To fund the company’s operations, the defendants raised capital by securing investments from dozens of individuals. The defendants falsely claimed that investors could rollover funds held in retirement plans to Inofin and that the company was an authorized custodian of retirement money. They claimed that the company would invest and return the principle with interest.
In reality, Inofin was never an authorized custodian or trustee of retirement funds. Due to these misrepresentations, investors sustained losses of more than $10 million in retirement savings that were transferred to Inofin. Eventually, Inofin entered into involuntary bankruptcy proceedings.
Again, Michael J. Cuomo has been sentenced to 48 months in prison. Kevin J. Mann was sentenced to 42 months in prison. More details can be found here.