Crozet man gets 7½ years for Ponzi scheme

CHARLOTTESVILLE -- A Crozet man who bilked more than $5.3 million from investors in a decade-long Ponzi scheme was sentenced to 7½ years in prison yesterday in Charlottesville's federal court.

U.S. District Judge Norman K. Moon sentenced John Mark Donnelly to 90 months in prison and three years of supervised release. Authorities said Donnelly will have to repay all of the stolen money.

Authorities said Donnelly moved funds between three shell investment companies and mailed out false documents to investors to make it seem like their investments were doing well. The economic downturn unraveled the scheme.

Donnelly, 52, told the audience before his sentencing that he was sorry for what he had done.

U.S. Attorney Timothy J. Heaphy said it is unlikely that Donnelly will be able to work enough to pay back all of the money once he is released from prison.

Defense attorney John Davidson said it is likely the federal Bureau of Prisons will order him to a facility within four to six weeks. In the meantime, Donnelly remains out on a $100,000 bond.