Lexington woman, 83, pleads guilty in $10 million Ponzi scheme run from West Springfield
Barbara A. Hirshfield admitted to five counts of wire fraud tied to a lending business that prosecutors said stopped making loans years ago and paid earlier investors with money from new ones. More than 200 people lost about $10.9 million.
A Lexington woman pleaded guilty Thursday in federal court in Springfield to running a roughly $10 million Ponzi scheme that prosecutors said drew in more than 200 investors.
Barbara A. Hirshfield, 83, admitted to five counts of wire fraud, according to the U.S. attorney's office in Boston. Sentencing is set for Jan. 7, 2026. Wire fraud carries up to 20 years in prison.
Prosecutors said Hirshfield owned and ran Ideal Financial Services Inc. in West Springfield, along with Ideal Financial Holdings. The company presented itself as a car and small-loan lender and raised money by selling promissory notes that promised high returns, telling investors their money would fund the lending business and that returns would come from borrowers' loan payments.
The Massachusetts Division of Banks ordered Ideal to stop taking outside investment money in 2012 and revoked its lending licenses in 2014, prosecutors said, but Hirshfield did not tell investors and kept selling notes. By at least 2019, they said, the company was making little or no money from lending and relied almost entirely on new investors, whose money was used to pay interest and principal owed to earlier ones.
When Ideal missed promised interest payments in late 2024, prosecutors said, Hirshfield blamed banking problems, fraud, data breaches and lost or stolen checks while soliciting more money at ever-higher promised returns. The scheme collapsed about June, when she could no longer make the payments.
Prosecutors put the losses at about $10,930,940 to roughly 204 victims, more than 25 of whom suffered substantial financial hardship.
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