A federal judge in Gainesville sentenced Elmer Swain Stewart to prison on charges he swindled at least 18 people out of money he claimed he was investing in timber bids.
U.S. Attorney BJay Pak said in a press statement Stewart, 67, talked people into investing anywhere from $5,000 to $50,000 in the scheme. Pak said when it came time for a return, Stewart would tell the victims the ivestments was rolled over into even more timber bids. Ultimately, the victims were bilked out of more than $1 million.
“Stewart’s victims trusted him with much of their retirement savings and gave him thousands of dollars to invest,” said Pak. “In return, this greedy defendant stole from his investors and used their money to fund his lavish lifestyle.”
Stewart used the money for fishing trips to Alaska, Hawaiian vacations and hunting trips out West. In addition, Stewart lived on a White County horse farm valued at $1.5 million that he falsely claimed he owned. The investors' money was used to pay rent on the property and for basic living expenses.
U.S. District Judge Richard Story sentenced Stewart to two years in prison, followed by three years of supervised release and ordered him to pay $218,000 in restitution. Stewart pleaded guilty to one count of wire fraud on Dec. 8, 2017.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys William L. McKinnon, Jr. and John Ghose prosecuted the case.
