A private equity firm founder and former New Hampshire Republican gubernatorial candidate, Charles M. Johnson, has pleaded guilty to defrauding investors out of more than $50 million. Johnson, who co-founded Concordant Capital, admitted in court to misleading clients about the performance of his firm's investments. The investments were primarily in a real estate fund, and prosecutors stated that Johnson used funds from new investors to pay back earlier investors, a classic Ponzi scheme structure. The scheme ran from 2019 to 2022. Johnson's guilty plea includes charges of wire fraud and securities fraud. He faces a maximum of 20 years in prison and a $5 million fine for each count. His sentencing is scheduled for September 10th. Johnson had previously run for governor of New Hampshire in 2016, losing in the Republican primary.

Concordant Capital, headquartered in Boston, managed approximately $1.5 billion in assets before its collapse. The Securities and Exchange Commission (SEC) also filed civil charges against Johnson in 2023, alleging he misappropriated investor funds for personal use, including lavish expenses and payments to associates. The SEC sought disgorgement of ill-gotten gains and civil penalties. Johnson's plea agreement with the Department of Justice requires him to cooperate with the government's ongoing investigation into the matter. The case highlights the risks associated with private equity investments and the importance of regulatory oversight.