A Pennsylvania man has been sentenced to four years in federal prison after orchestrating what prosecutors called a brazen $72 million fraud scheme that duped two lenders into believing he was financing insurance company acquisitions.
U.S. District Judge Kelley Hodge handed down the 48-month prison term to 39-year-old Joshua Coleman of North Wales. In addition, Coleman must serve three years of supervised release and repay more than $57 million in restitution, the U.S. attorney’s office in Philadelphia said Tuesday.
“Coleman brazenly lied to his lenders, falsifying documents and forging signatures to help conceal his scheme,” U.S. Attorney David Metcalf said. “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.”
The Mechanics of the Scheme
Coleman pleaded guilty to wire fraud in September 2023, admitting that between 2020 and 2022 he tricked two lenders into pouring $72 million into his ventures. Prosecutors said only $10.9 million actually went toward purchasing insurance companies—the supposed purpose of the loans—while the remaining $61 million was siphoned into personal expenses, business debts, and other companies he controlled.
Court filings revealed that after pocketing $25 million from one lender, Coleman quickly wired $20.2 million to two former clients, settling a secret 2020 agreement after he misused their money as an investment adviser.
“Critically, however, the defendant did not admit that he used the money to pay back investors whose money he used without authorization, because this would have revealed the defendant’s Ponzi-scheme-like activity,” prosecutors wrote in a September 2024 sentencing memo.
