Cazenovia Man Sentenced on Fraud and Money Laundering Charges

A Cazenovia man has been sentenced to 5 years in prison on charges of fraud and money laundering. In addition to prison time 71-year-old James P. Griffin was ordered to pay a $2,300 special assessment, and over $2 million in restitution to his victims.

United States Attorney Richard S. Hartunian says, "This massive fraud caused harm that can never be fully repaid. Today’s sentence represents a measure of justice for the victims who will suffer the effects of these crimes for years to come." Griffin was found guilty in a jury-trail back in July of the charges. During his time as CEO of several companies, he accepted $1.6 million through a scheme involving a financial product he called "the 54 Freedom Charitable Gift Annuity."

In a release from the U.S. Department of Justice it states, Trial testimony established that Griffin promised that the product was backed by a highly-rated, major insurance carrier and would provide guaranteed lifetime income to the purchaser.  The evidence showed that, in fact, Griffin knew the Charitable Gift Annuities were not underwritten by insurance companies, and purchasers received no payments after 2013. His fraud charges were a result of mail fraud. Griffin said that he would be able to protect clients from tax penalties for withdrawing early from retirement accounts. The total damages from both schemes equaled $2.1 million.