Barbara A. Hirshfield, 83, of Lexington, pleaded guilty in federal court to five counts of wire fraud for running a Ponzi scheme that cost 204 investors nearly $11 million.

Hirshfield entered the plea Sept. 3 in U.S. District Court in Springfield, the U.S. Attorney's Office for the District of Massachusetts announced. She is scheduled to be sentenced on Jan. 7, 2027, and faces up to 20 years in prison on each count.

Prosecutors plan to seek four years of incarceration and nearly $11 million in restitution, according to Boston.com. More than 25 of the victims suffered substantial financial hardship, prosecutors said.

The fraud centered on Hirshfield's West Springfield companies, Ideal Financial Services Inc. and Ideal Financial Holdings. The businesses sold promissory notes to investors, promising high, fixed rates of return. Investors believed they were funding a motor vehicle and small loan operation, according to the Boston Globe.

The company had deep roots. Hirshfield's father started it as Ideal Budget Plan Inc. in 1948, financing furniture and home appliances. Control passed to Hirshfield and her sister in 1980, and they shifted to motor vehicle, mortgage and business loans in 2005, the Globe reported. Many investors were relatives or descendants of the company's original customers, or parents who had bought notes for their children.

State regulators flagged problems early. In 2012, the Massachusetts Division of Banks (MDB) ordered Ideal to stop soliciting outside investments, MassLive reported. Two years later, the MDB revoked Ideal's lending licenses. Hirshfield disclosed neither action to investors, prosecutors said, and kept selling notes.

By 2019, the company was generating little to no lending revenue. Ninety-five percent of the more than $7.6 million raised from note sales after that point went to repaying earlier investors, prosecutors said.

When payments to investors stalled in late 2024, prosecutors said Hirshfield blamed the delays on banking problems, data breaches and stolen or lost checks rather than disclosing the company's true finances. At the same time, she was emailing contacts to solicit new investments, promising returns as high as 18 percent, the Globe reported.

The scheme collapsed around June 2025, when Hirshfield could no longer cover interest payments or repay principal on outstanding notes, prosecutors said. Total losses reached approximately $10,930,940. One investor lost as much as $530,000, while most others lost amounts under $100,000 each, according to the Globe.

Hirshfield was charged in July 2026. Steven J. Brooks, a lawyer for Hirshfield, declined to comment, and a second attorney, Peter Tilem, could not be reached, the Globe reported.