Second man serving time in Ball State fraud scandal

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A Brooklyn, N.Y., man was sentenced to three years in prison for his role in an investment fraud scheme that cost Ball State University $13.1 million.

The Star Press of Muncie reported Tuesday that 46-year-old George Montolio was sentenced on March 7, 2013, after pleading guilty in New York City to one count of wire fraud. His conviction was related to a $5 million investment by the university.

The U.S. attorney's office and Ball State officials have kept quiet about the investigation because it is ongoing.

Thirty-eight-year-old Seth Beoku Betts was sentenced to four years in prison for wire fraud earlier this month. Betts has been ordered to pay $8.16 million in restitution and Montolio has been ordered to pay $3.8 million. The remaining $1.2 million remains unaccounted for.

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