Con man gets suspended sentence, fine

SALEM – A Beverly man who admitted swindling 10 local residents out of over $500,000 in an investment market scam was given a suspended sentence with probation and ordered to pay $400,000 in fines and approximately $526.500 in restitution.Michael M. Abbot, 52, of 1 Ellis Square, 4 Essex St., Unit 3B, Beverly, pleaded guilty in August to 10 counts of fraudulent sales of securities, 10 counts of being an unregistered broker-dealer and three counts of failure to file tax returns.Sentencing had been delayed pending payment of the full restitution.In Salem Superior Court Friday afternoon, Abbot was handed a suspended one year jail sentence and was placed on seven ears of probation by Judge Howard J. Whitehead.Conditions of the sentence were outlined by Assistant Attorney General Ina Howard-Hogan, which include that he be on house arrest for the first 18 months of his probation, monitored by an electronic bracelet, that he report bi-weekly to probation, complete 2,000 hours of community service, that he not represent himself as an investor broker and any financial dealings will be monitored for the first five years of probation.He also will undergo psychiatric and/or psychological counseling as deemed necessary, pay all fines, have no contact with the victims and must file tax returns for the years 2000 through 2003.According to records, Between August 2000 and June 2005, Abbot solicited and received more than $526,500 from 10 victim investors who gave him money upon the false pretense that he would invest the funds into companies such as Google, AskJeeves.com, Western Wireless, Sirius Satellite, Lucent Technologies and Motorola Inc.But instead, he held the money for himself and lied to them about the success of their investments as he used the cash to pay for his rent and purchase things for himself.He told the victims they were doubling their money and oftentimes making hundreds of thousands of dollars on their investments with him, the prosecutor said during the plea hearing.Abbot?s victims included a woman who had a business in Peabody and invested nearly $90,000; a Lynnfield couple who invested $125,000; a retiree living in Florida who invested $25,000; five Beverly men and a Lexington man who invested amounts ranging from $10,000 to $50,000 each.At some point, the clients suspected a scam and began asking for their investment money back and the investigation began.The case was continued to Jan. 28 because there are still several larceny charges pending which will either be dismissed or filed by the commonwealth.