Former lawyer guilty in $2.7M Ponzi scheme

A former Allentown attorney was sentenced Monday to 6½ years in federal prison after pleading guilty to his role in a $2.7 million investment fraud scheme victimizing his clients, according to the U.S. Department of Justice

Todd Lahr, 60, of Nazareth, who had an office in the 3500 block of Hamilton Boulevard in Allentown, was charged by federal prosecutors in March with persuading clients to invest in global business opportunities that didn’t exist.

After pleading guilty in April to securities fraud, wire fraud and conspiracy to commit both, Lahr was disbarred in May.

Lahr admitted that, from 2012-19, he conspired with others to fraudulently sell securities of THL Holdings LLC and Ferran Global Holdings Inc.

Lahr initially sold THL Holdings investments, promising the money raised would be used to pursue specific business opportunities including mining operations in Papua, New Guinea, and acquiring shares of a penny stock. In reality, the money was used for Lahr’s personal expenses and to make Ponzi scheme payments to prior investors, among other things.

Once Lahr realized he was running out of investor money to pay the THL Holdings investors, he sought investors for a second entity, Ferran. He told the Ferran investors their money would be used for business opportunities, including even more mining in New Guinea and residential property leases in Spain and England.

In fact, these funds were used to repay the prior THL Holdings investors and, again, for Lahr’s personal expenses. Those expenses included Lahr’s home mortgage and child’s tuition, utility bills and other personal debt. Total investor losses are estimated at more than $2.7 million.

After he was caught, Lahr lied in sworn testimony before the U.S. Securities and Exchange Commission. Lahr denied writing checks to his personal accounts from the THL Holdings accounts when in fact he wrote at least 25 checks to himself over a threeyear period. As part of his sentence, Lahr was ordered to pay $2.1 million in restitution and forfeit $273,000.