A Pennsylvania man was sentenced to more than six years in federal prison in Florida for running a $13 million Ponzi scheme that defrauded over 100 investors through fake diamond deals.

Adam J. Lowe, 43, from West Pittston, Pennsylvania, received the sentence Friday from U.S. District Judge David Leibowitz in Fort Lauderdale. Lowe pleaded guilty last year to conspiracy, wire fraud, mail fraud, and money laundering, according to the U.S. Attorney’s Office for the Southern District of Florida.

Court documents revealed that Lowe, along with two partners, convinced investors to buy “fancy-colored” diamonds by making false promises about their value, expected returns, and how the funds would be used. They also hid the fact that the diamonds were artificially enhanced and overvalued.

As part of a plea deal, prosecutors dropped several charges against Lowe.

One co-defendant, Murray Todd Petersen, 73, from California, was sentenced to nine years after a jury convicted him of wire fraud and conspiracy. Another, Scott Schafer, 63, from Florida, was given five years probation after pleading guilty.

All three were indicted in late 2023 for their roles in the diamond investment scam.

According to prosecutors, Lowe was president of The Diamond Desk Corp. and a manager at PetersenLowe LLC, a company sourcing diamonds worldwide. Petersen worked as a salesman, while Schafer helped inflate diamond prices to lure investors.

Victims were encouraged to hold their investments for one to two years. To discourage early withdrawals, Petersen and Lowe promoted a fake Chinese diamond market with promises of 5% to 8% monthly dividends—a classic Ponzi scheme using new investments to pay earlier clients.

When payments stopped, Lowe and Petersen shifted to outright theft, accepting prepaid funds for diamonds that never arrived.

Prosecutors say Petersen earned roughly $850,000 in commissions, which he used to cover business costs and tax debts.

The SEC sued Lowe in 2023, accusing him of spending nearly $1 million of investor money on personal expenses, including gambling.

In court filings, Lowe requested leniency, citing family obligations, health and addiction struggles, and cooperation with investigators. He expressed remorse but admitted responsibility for his actions.

Representatives for both sides declined to comment.

The U.S. Attorney’s Office team handling the case includes Marc S. Anton, Marx Calderon, and Latoya C. Brown. Lowe’s attorney is David A. Frankel. Petersen is represented by Alexandra A. Hoffman and Christian S. Dunham. Schafer’s legal counsel includes Adriana Collado-Hudak and David M. Kubiliun.

The case is U.S. v. Lowe et al., No. 0:23-cr-60225, in the Southern District of Florida.