Peabody Man Accused Of Running Ponzi Scheme Faces New Charges

PEABODY, MA — A Peabody man who was already facing civil charges from the Massachusetts Secretary of State and the Securities and Exchange Commission is now facing criminal charges stemming from a scheme authorities say bilked investors of $4 million.

Timothy Allcott, 58, of Peabody, and Thomas Renison, 66, of South Glastonbury, CT, were charged with wire fraud, tax evasion and conspiracy in federal courtMonday. Investigators say while running Boston-based ARO Equity LLC, the two men raised $6 million from mostly elderly investors. The firm had been set up to hide Renison's involvement, as he had previously been barred from working in finance by the SEC.

The men did not disclose losses to investors but instead tried to recruit new investors whose deposits were given to earlier investors to hide the losses. In a 2018 civil complaint, the Massachusetts Secretary of State said the investment vehicle had "the classic hallmark of a Ponzi scheme."

Most of the investors were in their 70s and 80s and were targeted over a three-year period beginning in 2015. Investigators say investors were promised annual returns of eight to 12 percent.