Asheville man appealing Ponzi conviction

ASHEVILLE, N.C. (AP) — A former Asheville businessman plans to appeal his conviction on charges that he ran a Ponzi scheme that cheated investors out of more than $13 million.

The Asheville Citizen-Times reported (http://avlne.ws/16aOswS) that 65-year-old James W. Bailey Jr. has filed notice of appeal.

Bailey was sentenced to 32 years in a prison after he pleaded guilty last week in U.S. District Court to securities fraud, mail fraud and filing false tax returns.

U.S. District Judge Martin Reidinger said he gave Bailey a longer sentence than guidelines called before because of the harm to Bailey's victims and his lavish lifestyle financed by his crimes.

A hearing is scheduled next month to determine how much investors might get back.

Prosecutors said Bailey's scheme collapsed in 2010 when he bounced checks.

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Information from: The Asheville Citizen-Times, http://www.citizen-times.com