Man Who Helped Bring Down Gunnallen Goes to Prison
Edward P. May is a 75 year old gentleman who ran E-M Management Company LLC, peddled limited liability companies (LLCs), generated $350 million from investors and worked closely with Frank Bluestein, a stockbroker with GunnAllen Financial. That relationship led to Mr. Bluestein helping peddle the private placements being offered up by Edward May and his company, which ultimately led to the demise of GunnAllen in 2010, according to Investment News.
May pled guilty to some 59 counts of mail fraud for fraudulent investments in everything from telecom to hotels in various states, including California, New York, New Jersey, Nevada and others. The federal regulators have indicated that investor losses form the Ponzi scheme was almost $50 million. May has received a 16 year prison sentence for his wrongdoings in the largest scam ever in Eastern Michigan.
Investors were guaranteed $30,000 to $100,000 per month from the LLCs that May peddled. Unfortunately for investors, he used investors' funds for his own use by enjoying gambling sprees to Las Vegas. According to the article, the GunnAllen stockbroker had no idea that Mr. May was running a Ponzi scheme, since he had invested in the private placements along with all the other investors who were scammed. Bluestein focused largely on older clients and encouraging them to refinance their homes in order to pay for the fraudulent private placements.