Joshua Coleman, a 39-year-old resident of North Wales, Pennsylvania, has been sentenced to four years in federal prison for orchestrating a large-scale fraud scheme involving two lenders. U.S. District Judge Kelley Brisbon Hodge also ordered Coleman to serve three years of supervised release and pay more than $57 million in restitution.
Coleman pleaded guilty in September 2023 to four counts of wire fraud related to the scheme, which took place between August 2020 and June 2022. According to court documents and Coleman’s own admissions, he persuaded two lenders to provide approximately $72 million in loans by falsely claiming the funds would be used to purchase insurance companies. In reality, only about $10.9 million was used for its stated purpose; the remainder was diverted for personal expenses, repayment of business debts, and funding other companies controlled by Coleman.
Court records show that after receiving around $25 million from one lender (Lender #1), Coleman transferred over $20 million to former investment advisor clients and their associated entity. He had previously acknowledged using these clients’ assets without their consent and agreed to repay them with interest. The majority of Lender #1’s funds were thus used to pay back earlier investors whose money had been misappropriated.
By late 2021, facing mounting debts and obligations, Coleman sought additional financing from a second lender (Lender #2). To secure this loan, he submitted falsified lien termination forms and other critical documents that misrepresented his financial position. Lender #2 ultimately provided nearly $48 million; only a fraction went toward purchasing an insurance company, while most was spent on unrelated business debts—including using about $11.5 million from Lender #2’s funds to repay Lender #1.
“Coleman brazenly lied to his lenders, falsifying documents and forging signatures to help conceal his scheme,” said U.S. Attorney David Metcalf. “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.”
“This sentencing reflects our commitment to holding accountable those who seek personal profit through lies and deceit,” said Wayne A. Jacobs, Special Agent in Charge of the FBI’s Philadelphia Field Office. “Alongside our law enforcement partners, the FBI will continue our pursuit of those who orchestrate and execute complex financial fraud schemes.”
The case was investigated by the FBI and the Federal Housing Finance Agency Office of Inspector General with assistance from the Securities and Exchange Commission (SEC). Assistant United States Attorneys Anita Eve and Francis Weber prosecuted the case.
The SEC has also filed civil charges against Coleman.
