CINCINNATI - The U.S. Attorney's office has filed a civil forfeiture action against Glen Galemmo, the Cincinnati money manager accused of operating an elaborate Ponzi scheme in which roughly 200 investors allege they lost up to $300 million.
The Internal Revenue Service is now confirming that it has opened a wire fraud, mail fraud and money laundering investigation involving Galemmo.
The federal court filing seeks the forfeiture of several bank and brokerage accounts with a combined $334,000 in cash, along with an office building valued at $811,000 by Hamilton County's auditor. The brokerage accounts were seized pursuant to an IRS warrant July 2, according to the U.S. attorney's filing, which also seeks access to the office building at 2230 Park Ave. in East Walnut HIlls as part of a continuing investigation. The Park Avenue building is where Galemmo operated an investment advisory business under the name Queen City Investment Funds.
In a pair of lawsuits filed in Hamilton County Common Pleas Court last week, roughly 200 investors allege they lost up to $300 million because of Galemmo's actions. Galemmo notified investors July 17 that his business was shutting down, directing them to contact the IRS for additional information. In a proposed class action lawsuit filed July 26, investors alleged Galemmo engaged in "one of the largest financial frauds in the history of Hamilton County."