By: Richard L. Smith
A former Somerset County attorney has been sentenced to two and a half years in federal prison for defrauding investors through a phony financial services firm, according to a statement released by the U.S. Department of Justice.
Lawrence Coven, 61, of Hillsborough, New Jersey, was sentenced to 30 months in prison by U.S. District Judge Robert Kirsch in Trenton federal court.
Coven had previously pleaded guilty to one count of wire fraud after admitting to orchestrating a scheme that misled victims out of significant sums of money under false pretenses.
According to court records and statements made in court, Coven ran a company known as Sunrise Enterprises LLC, which claimed to offer financial services and high-yield investment opportunities.
Promising returns of 10 to 15 percent, he lured victims by falsely stating their money would be used to fund short-term loans for borrowers who couldn’t qualify for traditional lending options. 
Coven reassured investors that the ventures were low-risk and that their capital was secure.
However, instead of using the funds as described, Coven diverted the money for personal expenses—including real estate payments, utility bills, entertainment, credit card debt, and cash withdrawals.
When investors began to question the status of their funds, Coven responded with false reassurances and continued to use new investors’ money to pay earlier ones in a scheme that mirrored a Ponzi structure, according to the Department of Justice.
The fraudulent operation ultimately collapsed under the weight of its deception, and federal prosecutors moved forward with wire fraud charges.
As part of the sentence, Coven will also be subject to three years of supervised release following his prison term.