Clifton Park Couple Pleads Guilty to Bilking Investors in Ponzi Scheme

A Clifton Park couple has admitted to bilking at least 15 investors of over one and a half million dollars in a fraudulent investment scheme.

Steven and Jeanne O'Brien pleaded guilty to mail fraud in the Albany federal court Tuesday and now face up to 20 years in prison and a fine of up to $250,000.

According to Glenn Suddaby, U.S. Attorney for the Northern District of New York, the couple owned a company called Save-a-Home, LLC, which they operated out of their home and from a commercial location on Route 9 in Clifton Park.

The couple started the company in 1998. Beginning in 2000 and through November 2003, the couple solicited and lied to investors, guaranteeing above-market rates of return within two to three months from the lease or sale of the property.

A typical agreement promised a 20 percent up to as much as 30 percent return on investment or a return in 60 days.

"In truth and fact, Save-a-Home ceased to acquire real estate shortly into its oepration, was not profitable, and had insufficient assets from which to generate returns as promised," said Suddaby.

The couple continued to encourage new investments and attempted to assuage investors' doubts by telling investors that their company had purchased specific properties in the Albany and Bronx areas in New York, in New Jersey and in Florida.

Steven O'Brien event went so far to take certain investors to see properties in the Albany area and in New Jersey, claiming that they belonged to the Save-A-Home company.

Meanwhile, investors' funds were being used for the O'Briens' personal expenses, such as their home mortgage, their car lease, the purchase of a recreational vehicle, and a loan to Steven O'Brien's brother for real estate, said Suddaby.

Suddaby estimated at least 15 victims had lost about 1.6 million dollars in investments. The O'Briens have agreed to forfeit the amount.

The couple faces sentencing May 8.