BALTIMORE — Attorney General Brian Frosh announced the convictions of Eugene Fusting and Christopher Fusting relating to their operation of a Ponzi-like investment scheme between 2012 and 2019.
Eugene, 79, would solicit friends and family to “invest” in what he called a “family and friends,” “income”, or “trust” plan, claiming that he and his son Christopher, 52, were operating an investment fund.
Eugene claimed the funds would be pooled and guaranteed the principal and a certain, though differing, rate of return. Many claims were made, but there was actually never a pooled investment fund nor any investment plan.
According to the Attorney General’s office, the funds obtained, which was over $800,000, were instead spent by the Fustings on personal expenses such as mortgage payments, credit card bills, vacation rentals, swim club memberships and private school tuition.
“This father-son team stole money indiscriminately from elderly investors and from family and friends,” said Attorney General Frosh. “The Fustings operated a fraudulent scheme and depleted the savings of their victims to support their lifestyle.”
Both Eugene and Christopher held brokerage accounts in their individual names at an online securities brokerage firm where they would wire a portion of the funds they received. Instead of using the funds for investing, the brokerage accounts served as a conduit for an investor fund, where investors’ money sat until the balances on the Fustings’ individual…
