Federal authorities are taking a firm stance against white-collar investment fraud.
This commitment became evident on Tuesday when Chelsea investment advisor and former Planning Board member Gary Martel received a sentence of more than 7 years in federal prison along with $6.5 million in restitution and forfeiture. The sentencing comes shortly after another prominent Chelsea fraud case involving Michael McLaughlin drew scrutiny for what many viewed as lenient terms in a plea agreement with the U.S. Attorney’s Office—terms that could potentially spare the former housing chief from incarceration if he provides substantial cooperation.
The courtroom on Tuesday filled with victims who described how Martel had defrauded them through a purported Facebook stock investment scheme that proved to be fraudulent. Operating an investment office in Chelsea, Martel had managed clients both locally and nationally. He had also been a visible community figure, serving on the Planning Board and maintaining one of Washington Avenue’s most notable historic residences, which was later forfeited and converted into condos by developers.
The impact of Martel’s crimes on his victims was extensively documented during the proceedings.
In November of last year, Martel entered a guilty plea to three counts of mail fraud and one count of wire fraud.
According to investigators, Martel defrauded his so-called investors of approximately $3.236 million—funds that were never directed toward any legitimate investments he had promised to his clients.
He was required to forfeit that amount and additionally repay $3.274 million.
Judge Dennis Saylor IV imposed a sentence of 87 months in prison followed by three years of supervised release.
For comparison, a New York Federal Court judge sentenced Bernie Madoff to 150 years in prison in 2009 for orchestrating a larger-scale but structurally similar Ponzi scheme that received far greater public attention.