Nacogdoches businessman sentenced to 10 years for embezzlement - KTRE.com | Lufkin and Nacogdoches, Texas

Nacogdoches businessman sentenced to 10 years for embezzlement

U.S. Attorney Rebecca A. Gregory announced Friday that a 57-year-old Nacogdoches man has been sentenced for perpetrating a commodities Ponzi scheme.

George D. Hudgins was sentenced to 121 months in federal prison. He was also ordered to pay restitution of $70,864,679 to his victims. About 40 percent of that has already been collected and will be paid back to the victims.

Hudgins pled guilty on Sept. 9, 2008, to wire fraud, embezzlement and money laundering.

According to information presented in court, from 2004 through April 2008, Hudgins solicited and accepted funds from numerous investors for the purpose of investing in commodities futures and stock index futures.  To encourage investment, Hudgins provided investors with false and misleading information concerning the pool's historic returns.  Instead of operating at the significant profit levels stated by Hudgins, the pool lost large amounts of money.  Hudgins actually used monies provided to him by investors to pay "profits" to other investors, thus executing what prosecutors describe as a Ponzi scheme.

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