Haddon Heights man guilty of fraud

A Haddon Heights man pleaded guilty in federal court in Camden yesterday to scamming millions from investors who believed his company had a government defense contract to ship military equipment overseas.

Instead, prosecutors said, Glyn Richards was operating a classic Ponzi scheme, in which investors were promised quick returns on their money.

Richards told people who invested in his Audubon company, All Freight Logistics, that they would receive a 44 percent return within a few months, according to court records.

Richards, 44, was arrested last year after an investigation by the Camden County Prosecutor's Office. Federal prosecutors then adopted the case.

Richards pleaded guilty to mail fraud and money laundering. His sentencing has been set for Oct. 14.

He will be required to pay restitution. The amount is still being calculated, but the final number promises to be in the millions of dollars. Investigators said previously that he had taken in more than $10 million from investors.

"Restitution is what this plea agreement is all about. Making victims whole," said Richards' attorney, Jaime Kaigh. "Mr. Richards made a series of bad decisions, and today is the first decision in a series to right what he's done."

Richards began collecting money from investors in May 2005, telling them his company had a contract with the Defense Department to ship military equipment.

He told investors that he needed up-front money to pay overseas agents and shipping lines, and that the return on investments would be fast and substantial.

A typical contract asked for a 120-day, $25,000 investment.

Richards, who has a previous state fraud conviction, was allowed to remain free on a $350,000 bond.