Woman In Prison Photo by Anucha Pongpatimeth/Shutterstock.com

A Connecticut judge tacked on two more years to a former Denver attorney’s prison sentence for lying to investigators and hiding funds after she was ordered to pay restitution for a  “pump and dump” stock scheme.

Authorities said former attorney Diane Dalmy, 63, orchestrated the scheme with a Connecticut attorney and Suffield man. Dalmy was resentenced Friday afternoon by U.S. District Judge Jeffrey Meyer to five years in prison followed by three years of supervised release.

Dalmy was originally sentenced in May to three years in prison and ordered to pay $2 million in restitution for her role, but was resentenced because investigators said she lied about her financial assets by hiding about $47,000 in cash to avoid paying restitution.

Court papers said Dalmy used her position as an attorney to assist others in defrauding thousands of investors through the scheme. Dalmy allowed her co-conspirators to write falsified opinion letters in her name.

According to the government, Dalmy conspired with Hartford attorney Corey Brinson and Suffield resident Christian Meissenn, among others. Both Brinson and Meissenn were recently sentenced to three years in prison.

According to court papers, Dalmy performed securities-related legal work on behalf of several public companies, including Fox Petroleum and Mammoth Energy Group, a company that later became known as Strategic Asset Leasing.

Dalmy also provided co-conspirators with capital by advancing money which belonged to other clients of her law practice, the government said. Dalmy laundered approximately $825,000 through a bank account for a private company she helped incorporate, and her trust account.

Dalmy pleaded guilty to one count of conspiracy in February. The next month, Dalmy provided the court with a financial affidavit that required her to disclose all of her finances. After her original sentencing in May and before her reporting to prison in June, Dalmy attempted to hide the $47,000 in cash, prosecutors said.

In its Nov. 16 resentencing memorandum, the government wrote, “It is apparent from the defendant’s conduct and her recorded statements that her expressions of remorse at the time of her initial sentencing were insincere.”

Dalmy’s attorney, Robert Casale, moved for community service instead of additional prison time.

“The government’s position is straightfoward—max her out,” Casale wrote in a resentencing memo. “The defense suggests that it might be more appropriate to add a 200-hour community service condition to her supervised release.”

A check of the Colorado Office of Attorney Regulation Counsel shows that Dalmy’s law license had been suspended for nonpayment of an active fee. Brinson, authorities said, surrendered his law license in November 2016.

Casale, a Guilford-based solo practitioner, did not respond to a request for comment.

In addition, Thomas Carson, a spokesman for the U.S. Attorney’s Office in Connecticut, had no comment beyond what was in the court records.