U. S. DISTRICT COURT
Scam artist vows to repay $5.6 million to victims
Published: October 07, 2009, 12:30 am
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An admitted scam artist from Ellicottville will spend four years in federal prison, and when he gets out, he vows that he will do everything he can to repay $5.6 million to his victims.
But at least some of the victims of Robert C. Logel, 46, doubt that they’ll ever see a penny.
“I don’t think we’ll ever get any of the money back,” said Diane Brown, 53, of Machias. “He’s had eight years to make good on what he did to us. If he hasn’t done it already, I don’t think we’ll ever see it.”
Brown was one of about eight victims who came to see Logel, founder and former managing director of a firm called Spaulding Ventures, sentenced Tuesday afternoon by U. S. District Judge William M. Skretny.
Logel pleaded guilty in April to a felony mail fraud charge, admitting that he cheated two investors out of millions of dollars. But he also agreed to repay money from 17 other victims, Assistant U. S. Attorney Paul J. Campana said.
Victims — some of them unsophisticated investors from the Ellicottville area who trusted Logel — were told their money was going to be invested in new companies that sold medical products.
Logel sent reports to his victims, assuring them that their investments were doing well, but an FBI investigation showed that much of the money was never actually invested, authorities said.
“My husband and I lost $376,000, all the money we set aside for retirement,” lamented Brown, who now works as a cleaner in a nursing home. “Something like this changes the way you look at people. I don’t trust anybody anymore.” Similar comments came from Charles Bares, an Ellicottville dairy farmer who was Logel’s friend and neighbor. He lost $448,00 to Logel’s scam.
Standing with his attorney, Joseph
M. LaTona, Logel turned around to face Bares during the sentencing, telling him that he is truly sorry for what he did to him. He said that, after prison, he will do all he can to recoup money for the victims.
Bares said he never heard a word of remorse from Logel until Tuesday’s sentencing. He told Skretny that he hopes Logel’s sentence will send a message to “the next snake” who wants to victimize people.
Campana said he shares Brown’s pessimism about any of the money being returned to the victims.
dherbeck@buffnews.com
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