- Associated Press - Wednesday, April 12, 2017

HINGHAM, Mass. (AP) - A Massachusetts man has pleaded guilty to a federal charge for running what a state official described as a “classic Ponzi scheme.”

The Patriot Ledger reports (https://bit.ly/2p5v3z3 ) that Stephen S. Eubanks pleaded guilty to one count of wire fraud in federal court on Tuesday.

William Galvin, the secretary of state for Massachusetts, said the 48-year-old Hingham man accepted more than $500,000 from people he knew. Some of that was invested legitimately, Galvin said, but Eubanks spent $145,000 on himself. He was also accused of using money from more recent investors to repay early investors.

After learning of the scheme, Galvin sought an emergency order to prevent Eubanks from taking any more investments through his company, Eubiquity Capital.

Eubanks will be sentenced on July 11.

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Information from: The (Quincy, Mass.) Patriot Ledger, https://www.patriotledger.com

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