Germantown investment scam, federal prison for Middleton man
GERMANTOWN, Wis. – A Middleton man has been sentenced to two years and nine months in federal prison for his role in a multi-million dollar investment scam.
Jeremy Arrington, 44, pleaded guilty to wire fraud earlier this month. The scheme, orchestrated by Arrington and his business partner out of Germantown defrauded more than a dozen victims.
The federal government says Arrington and Joe Nemeth were taking money from investors, promising little or no risk, and offering returns from 12-36%. Instead, they used that money to pay off debt, delinquent taxes and other financial issues.
When they were unable to pay the returns, the government says the two tried to get extensions, additional money and new investors in what federal authorities said was a Ponzi-type scheme. In all, prosecutors say less than $500,000 in investor funds were returned.
Arrington was charged in August 2021 with one count of wire fraud and pleaded guilty that October. Nemeth was later charged with the same count, and a plea deal was arranged.
Both men will have to pay approximately more than $2 million back as a part of restitution in the case.