An attorney defending Aaron Olson has argued that her client should only have to pay back $16.7 million to defrauded investors, contending that he should not have to pay back money lost through legitimate investments.
Olson was sentenced in April to five years in federal prison, with an additional three years of supervised release and a $400 special assessment, after pleading guilty to four counts of tax fraud. Olson’s plea deal also stipulated that he pay restitution.
In a memorandum filed Wednesday, Inga Parsons, Olson’s lawyer, said Olson’s restitution should be reduced by $6.1 million from the $22.8 million figure recommended by the prosecution last week. Parsons also argued that Olson should also be entitled to keep a one-percent industry standard broker’s fee, as he had intended to operate a legitimate business practice.
“A reduction to accommodate for legitimate investment losses provides restitution that will make the victims whole as investors,” read the memorandum. “The losses involved were the direct result of actual investment of actual funds. To return everything they gave for investment purposes would be to overcompensate them and treat them not as the investors they were.”
Parsons requested that the court hold off on requiring Olson to make restitution payments or allow for nominal payments to be made until he is finished serving his 60-month prison sentence.
“Mr. Olson is not authorized to conduct business while in prison but is allowed to get paid a nominal amount, approximately $60 per month, for work performed at this correctional facility,” said Parsons. “Upon completion of his sentence, Mr. Olson will be able to operate the quarry jointly owned with his wife and utilize his share of the proceeds from the sale of granite at the quarry to make payments.”
In her memorandum, Parsons stated that Olson began trading in commodities with his father-in-law in 1999. He later became sole proprietor of AEO Associates, which operated from 2007 through December 2010.
Olson later started KMO Associated LLC.
“Mr. Olson would purchase and sell options, and trade in commodity futures through E*Trade’s electronic trading platforms,” reads the memorandum. “Unfortunately, Mr. Olson’s investment strategies did not always result in profitable returns. Furthermore, Mr. Olson became embarrassed when his legitimate attempts to invest profitably turned sour, and he began efforts to hide these failed investments and losses.”
Last week, prosecuting attorney Mark Zuckerman argued that Olson should have to pay back $22.8 million, as from the beginning the money was collected under a Ponzi scheme.
By Oct. 21, any responses to the two briefs, as well as a joint submission containing stipulated facts and factual disputes are due, per court order. The final restitution hearing is scheduled for Oct. 31.