Joel Wilson, seated in court in a subdued grey suit, with a look of mild interest on his face, is looking at a stacked deck. And it is not stacked in his favor. Wilson is accused of operating a Ponzi scheme in the Bay Area that scammed a number of local investors out of millions, before he and his wife disappeared to Germany. But his trial has finally begun and it will be interesting to be seen how he and his attorney structure his defense over the next few weeks.
Under the watchful gaze of Bay County Circuit Judge Joseph K. Sheeran, the jury selection took only a day, and the following morning Joel Wilson’s trial started with opening statements from the prosecutor, Assistant Attorney General Norm Donker.
Wilson is charged with three counts of fraudulent sale of securities, and three counts of sale of unregistered securities, both of which are felonies punishable by up to 10 years in prison. He is also charged with a single count of continuing a criminal enterprise (also known as racketeering) which is by far the most serious of the charges, and is punishable by up to 20 years in prison. Additionally, he is facing single counts of larceny by conversion $20,000 or more and larceny by conversion between $1,000 and $20,000.
As Donker pointed out in his opening statement, a person investing money in a business has a right to know what exactly it is that they are getting in return. As the owner and operator of the Diversified Group, Donker believes that Wilson had a responsibility to his investors. And this, he claims, is where Wilson failed.
His business was struggling and losing money
According to the prosecution, Wilson was making promises to people without giving them the full picture. He apparently did not share with investors the fact that his business was struggling and losing money at an astonishing rate, or the fact that the Diversified Group was loaning money to another business Wilson owned that was almost $1 million in debt and never once made a profit.
He also never told the 120 investors, who put a total of $6.5 million into his business, what he was doing with their money. And what he was doing allegedly included the purchase of $8,000 in Detroit Red Wings tickets and a car for his wife.
But according to Wilson’s defense attorney, Matthew S. Kolodziejski, this perspective is a rather one-sided view of Wilson’s business dealings. He pointed out that the Diversified Group was involved with local charities and provided jobs for 30 people in the Bay City area.
Businesses, he explained to the jury, sometimes fail. But that doesn’t mean a criminal act has been committed. He pointed out that Wilson’s own parents invested in his business and like all of the other investors, were financially hurt when the company tanked. But just because the business didn’t work out, and just because Joel Wilson may have liked sports games, doesn’t mean he ran a ponzi-scheme, or had any criminal intentions.
We will be following this trial closely and providing you with updates and coverage as things unfold. Stay tuned!