Northampton County Man, Robert McCabe Sentenced to 4 ½ Years for Bilking Family, Friends & Fraternity Brothers out of Over $1 Million in Phony Stock Scheme
PHILADELPHIA (STL.News) Acting United States Attorney Jennifer Arbittier Williams announced that Robert McCabe, 76, of Bangor, PA, was sentenced by United States District Court Judge Jeffrey L. Schmehl to four and a half years in prison, three years of supervised release, and ordered to pay $1,111,582 in restitution to more than 50 victims for defrauding them through an extensive fraudulent investment scheme.
In September 2020, the defendant was charged by Information with 21counts of various frauds, including securities fraud, wire fraud and mail fraud. McCabe, a former stockbroker who went to prison in the 1980s for securities-related fraud, pleaded guilty to these charges in November.
As part of his guilty plea, and in connection with his sentencing, the defendant admitted that for almost ten years, from September 2010 until June 2020, he defrauded life-long friends, fraternity brothers from Phi Kappa Psi fraternity at Lafayette College, and even his wife by promising to sell them “founders shares” of Esperion Therapeutics, Inc. McCabe claimed to have acquired shares of Esperion through a corporation he owned, McCabe Properties, Inc., at a very low price – approximately $2.67 per share.