RINDGE — A resident accused of swindling millions of dollars out of people and organizations through an investment scheme has plead guilty in U.S. District Court in Concord to tax evasion.
Aaron Olson of Rindge pleaded to four counts of tax evasion with the U.S. Attorney’s Office for the District of New Hampshire last week.
Olson admitted to willfully and knowingly understating his taxes due in 2007, 2008, 2009 and 2010, amounting to him underpaying the Internal Revenue Service $664,912, according to the plea agreement.
Olson was the sole proprietor of an investment business that did business as AEO Associates. In and around December 2010, he formed KMO Associates LLC, an investment business registered in Massachusetts.
From 2007 to 2010, Olson used AEO and KMO to obtain about $27.8 million from individuals and organizations ostensibly to invest on their behalf in various commodity, stock, and bonds markets. He operated AEO and KMO out of an office in Jaffrey.
According to the plea agreement filed April 14, “To mislead investors about the true disposition of the funds they placed with him, and to entice them to place more fund(s) with him to invest, the defendant sent investors false earnings statements that showed significant earnings on their investments.
The defendant knew these statements were false because he had converted investors’ funds to his own use and used their funds to pay purported “earnings” to other investors and had lost investors’ funds on investments that performed poorly.”
The agreement says prosecutors and the defendant plan to jointly ask the court for a sentence of 42 months and Olson waives his right to argue for a sentence of less than 42 months. His sentence remains up to the court.
The amount Olson would be ordered to pay in restitution to persons and organizations he defrauded is to be determined at his sentencing, which is scheduled to take place in September.