Joshua Coleman, a 39-year-old resident of North Wales, Pennsylvania, has been sentenced to four years in federal prison for his role in a large-scale fraud scheme involving approximately $72 million. The sentencing was announced by United States Attorney David Metcalf and handed down by U.S. District Judge Kelley Brisbon Hodge. In addition to the prison term, Coleman will serve three years of supervised release and must pay over $57 million in restitution.
Coleman pleaded guilty in September 2023 to four counts of wire fraud related to his actions between August 2020 and June 2022. According to court documents and statements made by prosecutors, Coleman deceived two lenders into providing loans totaling about $72 million to companies he owned and controlled. He claimed that the funds would be used to purchase insurance companies; however, only about $10.9 million was actually used for that purpose.
The remaining $61 million was diverted for other uses, including personal expenses, business debts, and payments to entities associated with former investment advisor clients whose assets Coleman had previously misappropriated without their knowledge or consent. One day after receiving approximately $25 million from one lender, Coleman wired around $20.2 million to these individuals and their entity as part of an agreement to repay them with interest.
By late 2021, facing mounting business debts and obligations to repay earlier lenders, Coleman sought additional financing from a second lender. To secure this new loan, he provided false documentation indicating that certain liens had been terminated when they were still active. He also falsified other key documents required for the loan process.
Of the roughly $47.6 million received from the second lender, just under $11 million went toward purchasing an insurance company; the remainder was misused for unrelated purposes—including repaying prior debts with funds intended for new investments.
“Coleman brazenly lied to his lenders, falsifying documents and forging signatures to help conceal his scheme,” said U.S. Attorney Metcalf. “Instead of using the funds as intended, he spent most of those millions paying off business debts and for personal expenses. My office will continue to target significant financial crimes like this and prosecute the fraudsters responsible.”
“This sentencing reflects our commitment to holding accountable those who seek personal profit through lies and deceit,” said Wayne A. Jacobs, Special Agent in Charge of the FBI’s Philadelphia Field Office. “Alongside our law enforcement partners, the FBI will continue our pursuit of those who orchestrate and execute complex financial fraud schemes.”
The investigation involved the FBI and Federal Housing Finance Agency Office of Inspector General with assistance from the Securities and Exchange Commission (SEC). Assistant United States Attorneys Anita Eve and Francis Weber prosecuted the case.
In addition to criminal charges, civil charges were also filed against Coleman by the SEC.
