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Former GOP gubernatorial candidate sentenced to 10 years in prison


Guest Harry Hope

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Guest Harry Hope

From The Associated Press, 7/13/07:

http://www.forbes.com/feeds/ap/2007/07/13/ap3913087.html

 

Ex-Candidate Sentenced for Ponzi Scheme

 

By MATTHEW BROWN

 

BILLINGS, Mont. -

 

A former Montana gubernatorial candidate and investment adviser was

sentenced Friday to 10 years in federal prison for his role in a Ponzi

scheme authorities say bilked investors out of $6.8 million.

 

Patrick Davison, 50, was also ordered to pay $5.6 million in

restitution.

 

He pleaded guilty in November to two counts of securities fraud.

 

"I can't run from what I did. I can't run from the people I hurt. I

have to stand and take my due," Davison told the judge.

 

The scheme lasted almost eight years, from 1995 through March, 2003,

according to court documents.

 

Prosecutors said victims were tricked into investing in nonexistent

securities.

 

To string the investors along, Davison, a former financial adviser for

UBS Financial Services, doled out interest payments while pocketing

most of the money for his personal use, prosecutors said.

 

Davison served on the Montana Board of Regents from 1993-2000.

 

He ran for the Republican nomination for governor in 2004 but lost in

a four-way primary.

 

The sentence he was given Friday was the statutory maximum.

 

U.S. District Court Judge Richard Cebull chastised Davison, saying:

 

"You held yourself out as a pillar of the community all the time you

were stealing money."

 

_________________________________________________

 

Harry

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