Nkhereanye ’93 gets prison for $2 million Ponzi scheme

Makara Nkhereanye ’93 and identical twin brother Tsele face up to 10-and-a-half years behind bars for running a $2 million investment scam.

The twins pleaded guilty last month to grand larceny and other charges for the Ponzi scheme.

The Nkhereanyes got into stock trading when they invested — and promptly lost — their mother's $185,000 retirement fund. They presented themselves as successful stock traders, promising 40 victims high profits and guaranteeing can't-lose investments.

The twins masked big investment losses from investors by using victims' original investments to pay out bogus profits. They also used investors' money to pay their rent and personal expenses.

Although they did invest the money, they lost money in all but one year between 2005 and 2009.

Makara wept profusely and expressed "gut-wrenching" remorse before the court, his defense lawyer told The Associated Press. But prosecutors said the twins were overheard discussing the need to appear contrite before the judge to obtain a more lenient sentence.

The pair was sentenced to between three-and-a-half to 10-and-a-half years in prison. The range reflects the possibility of time off for good behavior.