Bloomberg reported that Allied Health Care Services founder Charles K. Schwartz was sentenced to 16 years in prison for defrauding more than 50 financial institutions in a $135 million medical equipment leasing scheme.

As previously reported on monitordaily, in April he admitted to organizing and executing the phony lease scheme that caused losses of more than $80 million and victimized more than 50 financial institutions, according to U.S. Attorney Paul J. Fishman. Schwartz pleaded guilty before U.S. District Judge Susan D. Wigenton to one count of mail fraud.

In addition to spending millions of dollars on properties in New Jersey and New York, including a horse farm, Schwartz used the money in Ponzi-scheme fashion to repay earlier bank loans that were a part of the scheme, the U.S. Attorney said.

To read the full Bloomberg article click here.

Previously on monitordaily: Allied Health’s Schwartz Pleads Guilty In Lease Fraud, published April 14, 2011