Ponzi scheme lands former Minn. man in federal prison

A federal judge has sentenced a former Minnesota man to 6 1/2 years in prison without parole for bilking investors out more than $2 million.

Garry Milosevich, 67, formerly of Duluth, was captured in Honduras last year. He pleaded guilty to federal wire fraud in Madison in January.

Prosecutors said Milosevich and his partner, Daniel Tepoel, told investors they had access to international trading programs that didn’t exist. They used the investment money to travel and purchase construction materials for a failed Grenada resort. Investors never received promised returns and lost about $2.5 million in principal.

Tepoel was sentenced to 11 1/2 years in prison in 2008.

U.S. District Judge Barbara Crabb handed down Milosevich’s sentence Monday. She also ordered him to pay $775,000 in restitution to 19 victims.