NEW MEXICO (KRQE) – An Arizona man was sentenced to 30 years in prison for orchestrating a Ponzi-style investment fraud scheme that defrauded more than 100 victims, many of whom were Northern New Mexican residents, out of millions of dollars, according to the U.S. Attorney’s Office for the District of New Mexico.
John Lopez, 74, solicited investments through his company, Personal Money Management Company (PMMCO), from 2014 to 2022, falsely claiming to have developed a proprietary algorithm that generated above-market returns. The DOJ said he instead used client funds to purchase precious metals and to make Ponzi-style payouts to earlier investors, disbursing $6.1 million to maintain the illusion of legitimate investment returns.
Lopez collected approximately $24 million from investors and used about $16 million to acquire precious metals, which he stockpiled in his home basement, office, a rented storage unit, and even buried underground, according to the DOJ.
When federal agents seized PMMCO’s assets in November 2021, they recovered less than $15 million, which was short of the $39 million Lopez falsely claimed was under management.
Despite the seizure, Lopez continued to solicit new investors and issue fake account statements. Officials said Lopez lived off a six-figure salary and portrayed himself as a successful investor with assets rivaling major financial institutions.
Trial evidence revealed that he failed to track individual investments, lied about account balances, and actively discouraged large withdrawals to keep the scheme afloat.
After his indictment, Lopez violated his court-ordered release conditions at least five times—two before his conviction and three afterward—including committing additional fraud, making unauthorized financial transactions, refusing to turn over financial documents, and having prohibited contact with victims and witnesses.
Before his sentencing, federal agents executed another search warrant on Lopez’s home and found boxes of silver coins, worth approximately $350,000, hidden in the crawl space under the home. Officials said the location of approximately $3 million in additional precious metals remains unknown at this time.
As part of the sentencing, Lopez was ordered to pay $24 million in forfeiture. A restitution order remains pending, the DOJ said.
When he finishes his sentence, Lopez will be subject to three years of supervised release.
The U.S. Attorney’s Office brought a separate civil forfeiture action on April 15, 2022, seeking to forfeit assets seized in November 2021. Litigation in the civil proceeding is ongoing, the DOJ said.
