A Macomb County, MI insurance agent was sentenced yesterday to at least six years in prison for misappropriating over $800,000 from his senior clients.
Paul Garceau, Jr. pleaded guilty to embezzlement by an agent greater than $100,000 – a 20-year felony, and two counts of embezzlement by an agent between $50,000 and $100,000 – a 15-year felony. He has agreed to pay $613,199 in restitution.
WJKB-TV reported that Garceau was sentenced to six years to a maximum of 20 years for the first charge. For the latter charges, he was sentenced six to 15 years. The sentences will run concurrently.
The attorney general’s office said that between 2008 and 2015, Garceau embezzled $800,918 from 12 elderly clients in Wayne, Macomb, Oakland and Livingston Counties.
An investigation into the agent’s criminal activity began in October 2014, when Michigan State Police looked into an embezzlement and forgery complaint. The Department of Insurance and Financial Services investigated further and uncovered evidence that Garceau was engaging in illegal activities.
As part of his scheme, Garceau would convince his clients to withdraw funds from legitimate investments, promising higher returns by reinvesting in better opportunities. He did not reinvest the money, however, instead using the cash for himself and his Ponzi scheme.
Garceau was charged in May, 2017.
Macomb County Circuit Court Judge Richard Caretti condemned Garceau’s crime, calling it “unspeakable.”
“There’s a distinct pattern to your treachery. Most of your victims appear to be elderly people nearing retirement who invested with you to achieve their dream of security, financial stability and happiness in their golden years,” Caretti said. “Instead you shattered those dreams with a financial sledgehammer.”
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