Judge has harsh words for man sentenced in Ponzi scheme

LYNCHBURG - While sentencing a Lynchburg man to three years in prison for his involvement in a $450,000 Ponzi and tax-fraud scheme Wednesday, U.S. District Court Judge Norman Moon offered a stiff rebuke.

"What you do is almost worse than killing people," Moon said, saying 45-year-old Jeffrey Thomas Tuggle had stolen several victims' life savings, including that of a woman in her 80s who likely would have to work until her last days.

The judge told Tuggle he should have been locked up for 20 years and that he didn't believe there was any way he would pay back his victims.

Tuggle, also listed as a Gladys resident in Campbell County court records, pleaded guilty in August to two counts of tax fraud, one count of wire fraud and one count of failing to file a tax return.

Court records show that between 2004 and 2006, Tuggle told investors he was running a business advancing personal injury awards to lawyers' clients. In exchange for putting up the money, Tuggle promised investors returns of 30 percent to 40 percent.

Initially, investors were paid back with other investors' money and some gambling winnings. In the end, though, according to prosecutors, Tuggle gambled all the money away.

Assistant U.S. Attorney Ronald Huber told the court investors lost more than $450,000 and that Tuggle owed $156,000 to the IRS.

Investor Bruce Clark testified Wednesday that he lost $56,000 in the scheme. Clark said he had to sell his home and several vehicles and is still $25,000 in debt.

He said Tuggle tried Tuesday to get him to sign a letter signed by other victims asking the court not to put him in prison. Clark testified another former investor set up the meeting, promising that Tuggle would give him $1,000 when he arrived.

When they met at a Lynchburg restaurant, there was no money, Clark said. He said it was the first time he'd heard from Tuggle in three years.

"I got an 'I'm sorry,' and a handshake," Clark testified.

Before sentencing, Tuggle told the court he would have to live with the fraud and that he would never do it again. Moon interrupted several times.

"If you get a chance, you'll do it again," Moon said, adding that Tuggle lived with his crimes without remorse for two years until he was caught.

When Tuggle gave the court a check for more than $6,000 for penalties and restitution, Moon questioned the source because, according to his probation officer, Tuggle was unemployed.

Tuggle told the judge the income came from sales of fundraising kits and that he was making as much as $2,800 per week. Moon said Tuggle should have reported his earnings, but that he didn't believe his story.

"You may say the sun is going to rise tomorrow ... but I'm not going to believe it, just because you say it," the judge told him.