Former Bishop Jailed for Nearly 4 Years for Fraud

Julius Blackwelder, a former Bishop of the Bridgeport Ward of the Church of Jesus Christ of Latter Day Saints, has been sentenced to nearly four years in prison.

The ward meets in the LDS Church in Trumbull.

Blackwelder, 59, formerly of Stratford, was sentenced to jail followed by three years of supervised release by Senior U.S. Judge Ellen Bree Burns in New Haven for "operating an investment fraud scheme," said Deirdre Daly, acting U.S. Attorney for the District of Connecticut.

He stole about $500,000, including $230,000 from one person.

According to court documents and statements made in court, beginning in 2005, Blackwelder persuaded individuals to invest their money with him as part of an investment pool known as the 'Friend’s Investment Group.' 

"At the time, he was the Bishop of the Bridgeport Ward of the Church of Jesus Christ of Latter-day Saints located in Trumbull, and he solicited investments from, among others, members of his congregation.

"Blackwelder misrepresented to investors that he would invest their money in safe, long-term commodities futures contracts, and that he was an experienced and successful commodities investor. In some instances, BLACKWELDER guaranteed investors’ principal and a specific return on their investment.  He documented his misrepresentations to investors in promissory notes, offering memoranda and account updates that he prepared.

Blackwelder instead used the funds to build a 7,000 square-foot home on the Housatonic River in Stratford and to" pay other personal expenses and to repay personal bank loans, including a line of credit from a Troubled Asset Relief Program (TARP) recipient bank."

He also used some invested funds to pay earlier investors, the prosecutor said.

“This defendant exploited his position in his church to mislead other church members into believing he was an accomplished investor who could help them protect and increase their wealth,” Daly said.  “Instead, he used much of the money he took from his victims to construct a luxurious waterfront mansion so that he could live in comfort while his victims struggled to make ends meet." 

She thanked the U.S. Postal Inspection Service, SIGTARP, IRS-Criminal Investigation and the Connecticut Department of Banking who investigated this matter, as well as our other law enforcement partners who are working diligently to protect investors by identifying and rooting out fraudulent financial schemes.”

On Feb. 20, 2013, Blackwelder pleaded guilty to one count of wire fraud and one count of money laundering.

The case was prosecuted by Assistant United States Attorney Jonathan N. Francis and Acting United States Attorney Daly.

Citizens are encouraged to report any financial fraud schemes by calling, toll free, 855-236-9740, or by sending an email to ctsecuritiesfraud@ic.fbi.gov.

To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.