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Bloomberg reported Allied Health Care Services founder Charles K. Schwartz was sentenced to 16 years and three months in prison for using a Ponzi scheme to defraud 74 financial institutions of $80 million. Schwartz pleaded guilty in April to defrauding lenders who invested $135 million in Allied Health Care Services.
According to the report, Schwartz used a separate company to carry out a phony invoice scheme over an eight year period admitting he used the money to pay himself and relatives and to also purchase real estate. Schwartz was ordered to pay $80 million in restitution.