Pocono News Section

Old Forge man headed to Federal prison

Old Forge man headed to Federal prison - Thursday, February 26, 2009 at 12:53PM EST

Reported by: David DeCosmo WYOU TV News
Thursday, Feb 26, 2009 @ 12:53pm EST
SCRANTON, LACKAWANNA COUNTY

43-year-old James Peperno Jr. of Old Forge has been sentenced to 33 months in Federal prison for his involvement in a scam that bilked investors out of hundreds of thousands of dollars.

Peperno was sentenced at the Federal District Courthouse in Scranton Thursday morning.

The scam involved a deal Peperno had with former attorney David Gnall The attorney would refer clients who had just come into money to Peperno who told them he would be investing the cash on their behalf. Peperno actually paid Gnall $20,000 for each referral and used most of the remaining money for himself. Gnall was sentenced on Monday to a year and a day in prison for his involvement in the scheme.

Peperno took the stand during his sentencing hearing and admitted he had stolen hundreds of thousands of dollars. He told the judge he could not remember how all of it was spent except for leased cars, jewelry, and trip he had made to Canada. Peperno apologized to all of his victims.

He must surrender to authorities from the Federal Bureau of Prisons by 2pm on March 25th.