Madison man sentenced to federal prison in decades-long wire fraud operation

MADISON, Wis. -- A Madison man who prosecutors said misled investors for over 20 years was sentenced to four and a half years in federal prison on Thursday, the U.S. Department of Justice said.

Thomas Demergian, 63, pleaded guilty to charges of wire fraud and federal tax evasion. He was also ordered to pay restitution, and will begin serving his prison sentence next month.

Prosecutors alleged that Demergian began misleading clients as far back as 2000. He allegedly told clients that he would invest their money in real estate trusts and mutual funds, but actually spent the money on himself.

Demergian allegedly gave his clients a fake investment portfolio sheet annually, and prevented clients from liquidating their assets.

The scheme was uncovered last year after a client's family member started asking questions about investments. In total, law enforcement determined that multiple clients lost money totaling about $1.8 million.

Prosecutors allege Demergian spent the stolen funds on gambling, travel, cars, collectibles and other expenses. He also allegedly underreported his income from 2017 to 2022, failing to disclose over $400,000 in stolen funds. He allegedly dodged over $104,000 in tax obligations.

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