Michigan Attorney General Bill Schuette Wednesday announced that Paul Garceau Jr., of Grosse Pointe Park, pleaded guilty to one count of Embezzlement by an Agent greater than $100,000, a twenty-year felony, and two counts of Embezzlement by an Agent between $50,000 and $100,000, a fifteen-year felony, and agreed to pay $613,199 in restitution.
Macomb County Circuit Court Judge Richard Caretti took the plea. Sentencing is scheduled for December 12 at 9 a.m.
"If you take advantage of Michigan seniors, there are consequences," said Schuette. "Today's guilty plea is the first step toward closure and financial assistance for those hurt by this crime."
"Mr. Garceau's actions were reprehensible," said DIFS Director Patrick McPharlin. "The staff of the Department of Insurance and Financial Services, together with the Department of Attorney General, did an outstanding job on behalf of Michigan consumers."
Garceau had his Michigan insurance producer license revoked on February 16, 2016 by the Department of Insurance and Financial Services; Garceau's company, Apex, also had its license revoked on that day. The Department of Insurance and Financial Services (DIFS) referred the case to Corporate Oversight in July of 2016.
An investigation began in October 2014 when Michigan State Police responded to an embezzlement and forgery complaint. A subsequent investigation by DIFS allegedly yielded more evidence of Garceau's scheme. The charges were brought in Macomb County.
Between January 2008 and January 2015, Garceau embezzled $800,918 of his clients' funds without their knowledge or consent, many of whom were elderly. The 12 victims live in Livingston, Macomb, Oakland, and Wayne Counties.
Garceau convinced his victims to withdraw funds from legitimate investments, stating he would reinvest their funds in more lucrative opportunities with higher returns. Instead, Garceau deposited the funds into his company's account, spending the money on himself or to further his Ponzi scheme.
Schuette charged Garceau in May of 2017.
Published: Fri, Nov 03, 2017
