Business/In Brief • Mar. 12, 2014
87-month sentence for fraud scheme
HONOLULU – A former Hilo resident has been sentenced to more than seven years in prison for a scheme that netted more than $1.2 million.
The U.S. Attorney’s office says Justice Wade Smith was sentenced Monday to 87 months in federal prison.
Prosecutors say he falsely claimed he would repay investors with interest using money he was to inherit from a family trust or with money he would get as a law enforcement contractor.
He previously pleaded guilty to two counts of wire fraud. He also pleaded guilty to willfully failing to file a 2012 tax return, when he received more than $230,000 from his scheme.
Smith is also ordered to pay $1.2 million in restitution to 33 victims and to pay back-taxes of about $185,000 to the Internal Revenue Service.