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Jury finds two former financial advisers guilty in Ponzi scheme

By WBFO News

Buffalo, NY – A federal court jury Wednesday found two Amherst men guilty for their part in an investment scheme that cost clients nearly $6 million.

Campbell Gent, 68, and James Lagona, 50, will be sentenced on their felony counts of conspiracy and mail fraud. Both men denied they were part of a Ponzi scheme headed up by Guy Gane and his company, Watermark Financial Services.

Prosecutors said Gent, while working for Gane, encouraged the sale of debentures or promissory notes to pay off earlier investors. They said Lagona falsely assured investors that their investments were safe.

Gane agreed to a plea deal in December, and testified against Gent and Lagona.

"This verdict ensures that these defendants will no longer be in a position to victimize those who work hard for their money," said U.S. Attorney William Hochul. "It should also serve as a warning to investors to follow some good old fashioned advice, if a deal sounds too good to be true, it probably is."