On Tuesday August 20, 44-year-old Douglas Ellingson pleaded guilty to defrauding investors of over $2 million, according to the Courthouse News Service. Ellingson, along with two other individuals, James Pantazelos and William Ison, allegedly conspired to defraud investors through Olathe Mining Co., a business owned by Ison, according to the U.S. Attorney’s Office.
Authorities claim Ellingson enticed potential clients to invest in the company by lying about Ison’s background, among other things. Because of his actions, investors became the victims of fraud. Ellingson and Ison allegedly told potential investors that Ison contributed more than a “trillion” dollars to a variety of humanitarian causes, and was the head of a large non-profit foundation that contributed this money. Essentially, Ellingson and his co-defendants enticed potential clients to hand over their money by making promises that charitable causes would be supported by the profits.
In February, Pantazelos was ordered to pay $3.3 million in restitution; he was also sentenced to 19 1/2 years in federal prison. Ellingson will be sentenced to up to five years in federal prison for wire fraud conspiracy in late October according to a statement from the U.S. Attorney’s Office.