A 74-year-old scam artist will spend 41/2 years in federal prison for defrauding four Honolulu clients in a $2 million investment scheme.
U.S. District Judge Leslie Kobayashi sentenced Joseph Sullivan to 55 months in federal prison and three years of supervised release on Thursday. She also ordered him to pay $1.8 million in restitution.
Thomas Otake, Sullivan’s attorney, said he had hoped the judge would consider a sentence of house arrest or home confinement given Sullivan’s age.
"It was a sad day all around," he said. "The complainants will likely never get their money back, and a 75-year-old man is going to jail for almost the next five years."
Sullivan, whose birthday is Nov. 7, was turned over to the federal detention center. He previously pleaded guilty to two counts of wire fraud and one count of passport fraud because he wanted to take responsibility, Otake said. He faced 50 years in prison.
In the courtroom, Sullivan expressed remorse and an intent to repay the victims, according to the lead prosecutor, Assistant U.S. Attorney Ron Johnson.
One victim, Josef Wolfgruber, said in court that Sullivan’s crimes had a devastating effect on his finances and his family’s security.
From 2003 to 2006, Sullivan marketed an investment opportunity in offshore accounts with high returns and took $2 million from the four clients, according to court documents.
He transferred money across state lines to securities trading firms, committing wire fraud.
In April, while out on bail, he tried to get a passport using the identity of a dead baby born in the 1930s. He told an FBI agent that he wanted the passport for "emotional comfort," the documents said.
