Two Lake Norman men, including one who owns a lakefront mansion and another who owns a lakefront home, were sentenced to prison recently after admitting last year that they stole from unsuspecting investors, federal prosecutors said.

Cornelius residents Marlin Hershey, 54, and Dana Bradley, 53, coaxed dozens of victims to invest in unregistered securities, The Charlotte Observer previously reported, citing prosecutors and court records.

The men pleaded guilty to wire fraud conspiracy in June 2023. In a news release at the time, U.S. Attorney Dena King in Charlotte called their actions part of “orchestrating a large-scale investment scheme.”

On Feb. 22, Hershey was sentenced to a year and nine months in prison, and Bradley was sentenced to 10 months and a day in prison, court records show.

How the scheme unfolded

From 2009 to 2021, Hershey and Bradley stole from numerous victims who invested in two unregistered securities offerings the men promoted, Performance Retire and Distressed Lending Fund, according to court documents.

Hershey and Bradley gave their victims investment materials that had false and misleading statements, King said. The materials also mentioned nothing about the financial troubles of the unregistered securities, she said.

The men made Ponzi-style payments to investors who’d been with them longer, using money from new investors, prosecutors said.

All of the investors lost money when the unregistered securities failed, court records show.

‘Significant restitution and financial penalties’

Prosecutors originally said the scheme involved $7.5 million in losses to investors, but a new plea agreement for Bradley last year listed the amount as being “in excess of $150,000 but less than $250,000.”

Bradley and Hershey must serve two years of supervised release after they complete their sentences, according to court documents.

The men also were ordered in court last month to pay what King called “significant restitution and financial penalties,” including more than $333,000 in restitution to their victims and combined forfeiture and fines of more than $600,000.