PHILADELPHIA (VINnews) – A Pennsylvania man who duped some of the region’s wealthiest business leaders into investing millions in his startup ventures — only to spend much of the money on lavish personal expenses — has been sentenced to more than nine years in federal prison.

Josh Verne, 48, of Gladwyne, pleaded guilty last year to federal fraud charges after admitting he used forged financial documents and false statements to raise about $31 million from investors between 2016 and 2022. Prosecutors said Verne diverted at least $9 million for private jet flights, country club dues, his daughters’ bat mitzvahs and other personal costs, instead of funding his companies as promised.

U.S. District Judge Cynthia M. Rufe imposed the 110-month sentence Wednesday, along with three years of supervised release and restitution of more than $16 million. Verne’s attorney did not immediately respond to requests for comment.

Among the investors were prominent Philadelphia-area figures, including billionaire entrepreneur and Philadelphia 76ers co-owner David Adelman, who contributed over $2 million; Fanatics CEO Michael Rubin; and real estate developer Bart Blatstein. Other backers included investor David Magerman, former mayoral candidate Sam Katz, and the state-funded Ben Franklin Technology Partnership of Southeastern Pennsylvania.

Verne, a furniture heir, founded Ownable, a company that rented electronic devices like smartphones and laptops to consumers who couldn’t afford to buy them outright. He also pitched other ventures, including a social media platform called FlockU. Prosecutors alleged Verne inflated his net worth, falsely claimed affiliations with firms like Goldman Sachs and used “Ponzi-like” tactics to pay early investors with later funds, concealing the misuse.

The scheme unraveled after investors grew suspicious, leading to a U.S. Securities and Exchange Commission civil fraud complaint in June 2023. Federal criminal charges followed in August 2024, including 25 counts of fraud, aggravated identity theft and witness intimidation. Verne pleaded guilty in March 2025.

Assistant U.S. Attorney Jerome Maiatico described Verne’s actions as financing “a lifestyle he could not afford” at the expense of trusting friends and neighbors on the affluent Main Line.

Some investors, like Blatstein, recovered their funds, but others faced significant losses. Adelman, identified in court documents as “Investor A,” hosted an initial presentation at his home that helped lure additional backers.

Verne resigned from his companies and relocated to Florida amid the investigations. The case highlights vulnerabilities in private investments, even among sophisticated business leaders.