Man pleads guilty to retirement-savings scheme

A former Ozark man pleaded guilty in federal court yesterday to engaging in an investment scheme that targeted senior citizens' retirement savings.

Steven Gwin, 68, pleaded guilty to mail fraud and money laundering charges handed down in a November 2010 federal indictment. Gwin, who had spent time in Guatemala and used several aliases and Social Security numbers, was apprehended in Arizona in April and remains in federal custody, according to a news release from the office of the U.S. attorney for the Western District.

Gwin admitted that between Aug. 17, 2005 and March 14, 2007, he engaged in a scheme to defraud investors by soliciting and obtaining funds from individuals looking to invest in retirement ventures. To promote the programs, Gwin held seminars in Missouri and Arkansas, primarily soliciting the elderly.

Gwin told investors he would put their retirement funds in secure, interest-earning investments, and he directed the investors to establish individual retirement accounts at Waco, Texas-based nonbank trust company Sterling Trust Co. After funding their IRA accounts, Gwin transferred investors' funds to purchase unsecured notes issued by First Nevada Marketing Inc., a Missouri corporation that Gwin operated, according to the release.

Gwin spent some of the funds on personal items, leaving investors with losses on their investments. Though the total amount of misappropriated investment funds hasn't been determined, the government has estimated the total loss at $1 million to $2.5 million.

Under the terms of the guilty plea, the government and the defendant agreed to a punishment range of 70 months to 108 months. A sentencing hearing will follow the presentence investigation by the U.S. Probation Office.

The case is being prosecuted by Assistant U.S. Attorney Randall Eggert and was investigated by the U.S. Postal Inspection Service and Internal Revenue Service-Criminal Investigation.