Daren Palmer

Daren Palmer steps out of the Federal Courthouse in Pocatello after pleading guilty Aug. 31, 2011.

A former Idaho Falls man who was sent to federal prison for fraud was scheduled to be released Friday.

Daren Palmer was being held at a Residential Reentry Management facility in Sacramento, Calif. The prison didn’t return a call Friday to confirm whether Palmer had in fact been released.

Palmer, now 49, was a money manager who was convicted in 2011 of running a $75 million Ponzi scheme, the largest Idaho-based financial fraud case in the state’s history. He was sentenced in September 2011 to eight years in prison, although this was later reduced to seven.

The reason for the reduction could not be determinted, according to an earlier Post Register report.

At sentencing, he was also ordered to pay more than $29 million in restitution, 200 hours of community service and three years’ supervised probation upon his release from prison.

According to an earlier Post Register story, sentencing guidelines suggested a prison term of 10 to 12 years, but Assistant U.S. Attorney Jack Haycock credited Palmer for cooperating with investigators, reducing the punishment range to between eight and 10 years. U.S. District Judge Edward Lodge settled just below that range, saying Palmer should get credit for his otherwise clean criminal record.

Reporter Nathan Brown can be reached at 208-542-6757. Follow him on Twitter: @NateBrownNews.