Fraud who made off with money from 39 victims gets 8 years in jail

When it came to other people's money, Edward Ronald Schnable had no qualms about whom he victimized.

There was his best friend's widow, members of his church congregation, and even girls who used to babysit his kids.

Schnable, 47, of Souderton, Montgomery County, was sentenced Thursday to eight years in federal prison on five counts of mail fraud and one count of wire fraud for a scheme from 1995 to 2003 in which he bilked 39 victims out of about $6 million.

Schnable, who pleaded guilty in April, was sentenced by U.S. District Judge Louis Pollak.

"This defendant recklessly gambled with other people's money and, in some cases, their life savings," said Acting U.S. Attorney Laurie Magid, in a statement about the sentence released yesterday.

Schnable convinced his unsuspecting victims to invest millions of dollars in what he claimed were risk-free investments, primarily in Costa Rican real estate, with a guaranteed annual return of 10 to 14 percent.

Instead, Schnable used the money to make his own risky investments in Costa Rica, to repay earlier investors who wanted their money back and to tend to personal needs.

During Thursday's sentencing hearing, seven of Schable's victims testified about the impact his crimes had on their lives.

Deborah Steiner, a Souderton woman who met Schnable through a friend, told the court that she was forced to sell her home after Schnable swindled about $275,000 from her and her husband.

After her husband was laid off, the only job he could find was in Iowa, forcing them to relocate, Steiner testified.

"I became so lonely and depressed, I essentially left my husband and moved back to Pennsylvania," Steiner said.

"And I'm saddened that I've come to this very angry and bitter end."

Schnable took the stand in his own defense and apologized to his victims.

"I'm sorry for what happened," Schnable said.

"I can't stress that enough." *