The U.S. Attorney's Office for the Western District of Texas announced that former Austin resident Rose Marie O’Reilly, 63, of La Grange, was sentenced to four years in federal prison for her role in an estimated $1.4 million Ponzi scheme.
United States District Judge Sam Sparks also ordered that O’Reilly pay $1,463,128 in restitution and to be placed on supervised release for a period of three years after completing her prison term.
“O'Reilly ran a classic con with a dazzling twist -- offering the allure of collectible silver antiques and pink diamonds. Like all Ponzi schemes, at its core was a simple scheme to defraud investors and use their money for her own gain,” United States Attorney Richard L. Durbin, Jr. said after the sentencing Jan. 15.
The O'Reilly case was investigated by the FBI, IRS-Criminal Investigation, and the Texas State Securities Board. The full news release from the U.S. Attorney's Office is available here.
O'Reilly told investors she could reap tens of millions of dollars through the acquisition and sale of some remarkable items: A silver banquet set supposedly commissioned by the late country singer Marty Robbins, and pink diamonds -- among the rarest and most expensive of diamonds -- formerly owned by deceased New Orleans crime boss Carlos Marcello. She falsely represented to investors that with their pooled funds she could acquire the "lost" pieces of the silver set, as well as the diamonds.