Retrial ends in conviction for Ponzi scheme

By David Waite
Advertiser Courts Writer

A La'ie woman who was accused of being the chief organizer of a Ponzi scheme that bilked approximately 5,000 investors from Hawai'i, American Samoa, Japan and the Mainland out of more than $66 million was found guilty in federal court yesterday of 14 criminal counts including mail fraud, wire fraud, money laundering and conspiracy.

U.S. District Judge Manuel Real, who presided over a jury-waived retrial of Montez Ottley, announced his verdict yesterday morning.

A jury returned a guilty verdict against Ottley in February, but the U.S. 9th Circuit Court of Appeals in San Francisco ordered a new trial in June, saying Real should have allowed Ottley, 57, to serve as her own counsel at the first trial.

Ottley served as her own lawyer during the retrial.

Her bogus program promised an 8 percent profit in 13 weeks in exchange for a minimum investment of $1,000.

After the first trial, Real sentenced Ottley to 27 years in prison, and is expected to hand out a similar term after the latest guilty verdict.

Reach David Waite at 525-8030 or at dwaite@honoluluadvertiser.com.