Maryland Man Gets 10 Years for Fraud

By Katie Hauser

Published on February 13, 2007

Federal prosecutors said Phillips, also known by the alias Mark Le Roy Aaron, bilked investors out of more than $600,000. He convinced investors, who included his own parents, to contribute to his company, Phydea Equity Fund LLC., in increments of $5,000 to $250,000, prosecutors said.

Phillips was accused of using investors’ money to day trade and then sending false statements of financial gain. At one point, he told investors that Phydea was worth more than $900,000, when in fact the company was worth less than zero, prosecutors said.

Phillips also allegedly opened numerous credit card accounts in his father’s name. Prosecutors claimed he used the money from his fraudulent activity to buy such luxury items as a samurai sword, musical equipment, a hot tub, two Jet Skis, and a telescope.

In addition to being sentenced to 10 years, Phillips was ordered to pay restitution of $618,000 and forfeit $618,000. In November, his attorney, Solomon Wisenberg, said he planned to appeal the guilty verdict.