The head of a failed New Hampshire mortgage firm who bilked investors out of tens of millions of dollars was denied compassionate release on Friday.
Scott Farah, who's serving 15 years in federal prison, was denied a request for release to care for his elderly parents last year. Farah appealed to the 1st U.S. Circuit Court of Appeals, which on Friday affirmed the lower court ruling. The panel ruled that the judge acted within his discretion in denying the release.
Farah, 56, whose father was a minister, headed the now-defunct Financial Resources Mortgage. Farah pleaded guilty to mail and wire fraud in 2011 and admitted pooling investor funds to pay off other loans, investors and personal expenses. Authorities called it a Ponzi scheme, saying he defrauded people of about $33 million.
"We are pleased with this decision, which will leave Mr. Farrah in prison to serve the remainder of the sentence that was justly imposed on him in 2011," U.S. Attorney Scott W. Murray said in a statement. "Farah's fraud scheme deprived his victims of millions of dollars and caused terrible damage to their lives. Hopefully this ruling will bring at least some closure for them."
In court papers, Farah produced his father's medical records to argue he should get compassionate release. He also cited the fact he cooperative with government investigators, has significant remorse for his crimes, and now works closely with the chaplain doing Christian ministry in prison.
