Lowell sentenced in Ponzi scheme

COEUR d’ALENE — A former successful Bonner County real estate agent was sentenced on Wednesday in federal court to three years in prison for a Ponzi scheme that ripped off North Idaho investors for $2.2 million.

Dale E. Lowell, 59, also was ordered to serve three years of supervised release following his prison term, pay $1.71 million in restitution, and perform 200 hours of community service by U.S. District Court Judge Edward J. Lodge. Lowell ripped off, among others, friends from a Sandpoint church, where he played the piano and sang.

Prosecutors have said Lowell preyed on the financial hopes of others, and falsely promised returns when he knew that he would use the victims’ money for his own use. Lowell pleaded guilty to felony wire fraud on Aug. 9.

Speaking to a few investors, and family, in court, Lowell said, “I am deeply sorry for the pain that I’ve caused you.”

Lowell, who was a longtime North Idaho resident, said he regretted what he called “sinful” actions. The victim investors lived in Sandpoint and Coeur d’Alene.

He talked about working to become an investor that was successful, and the difficulty of coming to grips with failure. He described falling asleep in front of his computer, reading news reports of overseas stock markets, and trying to learn what would make stocks go up and down, and searching for “clues” to pick hot stocks and dump cold ones.

“I looked forward to the recognition I would receive in this new business,” following the recognition he received in real estate, Lowell said. “I never even considered for a moment that I would fail.”

As smart as he thought he was, and he convinced people in his “investment club” that he was, he failed miserably.

When he failed, the lies started rolling, he said.

However, he always thought if he could get a little bit more money from investors, he would have a little bit more time to figure the markets out, and start getting the big returns he promised.

“I have betrayed my friends,” Lowell said.

Seeking the sympathy of the court, Lowell said he lost some close friends and family because of the scheme he perpetrated.

Victim and former friend Tom D’Orazi said Lowell was responsible for a “very clear and frightening con.”

D’Orazi said possibly the worst part of the fraud was Lowell’s efforts to get victims’ children to participate in his investment scheme.

He described the Lowell he used to know as “somebody I had a lot of respect for.”

Many victims were no-shows at the sentencing hearing because of the embarrassment and shame of being duped.

Victim Jeff Bales of Sagle pleaded with the judge, “Don’t let him succeed with this” con, and get off with a soft sentence.

“He developed a prestigious position at the Sandpoint Church of the Nazarene as a music leader and started a romantic relationship with Diane (Bales’ now ex-wife),” Bales said.

He said Lowell took advantage of some very vulnerable people, including those with terminal illnesses and disabilities.

“As his Ponzi was collapsing, Dale sent out emails that intentionally made us feel stupid,” he said. “In fact, in one email toward the end he taunted us by saying that he had hidden his assets with his ex-wife Suzie so that we would not be able to sue him.”

He said victims believe Lowell has stashed some of the money and will draw on it when he’s released from prison and he is no longer under supervision.

One of Lowell’s four sons, Logan, told the court, “Lives have been shattered because of what my father did.”

Still, he asked the court to take into consideration Lowell’s entire life, saying he wasn’t always a cheat.

“He fell off the boat,” Logan Lowell said.

Another son, Levi Lowell, tried to speak, but walked away from the microphone, visibly upset, before he could speak about his father.

Lodge said, “Good people make mistakes. But you have to be punished.”

Lowell has no other criminal history.

Lodge said a strong message has to be sent to the public that people can’t use the trust of others to rip them off.

“The facts show that you were sometimes using money for your own benefit,” the judge said.

He said it’s unlikely that the restitution would be paid.

Lowell lives with his elderly parents in Colbert, Wash.

According to court documents, Lowell, beginning in early 2005, raised funds with the promise of profit and safety.

He represented that he was an accomplished options trader and that his trading routinely returned profits of 10 percent to 50 percent per month.

He personally guaranteed the safety of the funds entrusted to him and inferred to investors that he had certificates of deposit in place to cover any losses that might occur.

Lowell raised about $2.2 million from 22 investor units, which included several family members.

Lowell either lost the money in the stock market, used it for personal and family expenses, or made payments to investors in order to keep the Ponzi scheme afloat.

The Idaho Department of Finance won a $2 million civil judgment against Lowell, but victims have received nothing.