Two men from North Texas and another man were all indicted for being a part of a Ponzi scheme worth $364 million. They were defrauding investors.
Jay B. Ledford, Cameron R. Jezierski, and Kevin B. Merrill was raising money from investors on the misconception that they were buying into cheap portfolios. The portfolios had information on consumer debt on not only credit cards, but student and auto loans as well.
They were telling investors that they were going to make a lot of profit by buying others debt.
U.S. Attorney Robert K. Hur says that they were luring investors with complex lies. The Ponzi scheme had them paying millions of dollars to the gentlemen.
The three men were able to spend more than $73 million at various casinos. Also, they were buying diamond jewelry and luxurious cars.
Ponzi Scheme In Texas
They were able to convince the investors by setting up fake companies and bank accounts. Also, they were falsifying wire transfers and debt collection reports.
Banks such as Capital Bank in Dallas, a JPMorgan Chase branch at North Richland Hills and a Bank of America branch at Colleyville had bank accounts in their names to move the money.
Those who were victim to the scams were small business owners, construction contractors, retirees, doctors, restaurateurs, and many more. Also, financial advisers in Maryland, Northern Virginia, Las Vegas, Texas, and other states.
The money from the scheme bought the men boats, a share in a jet plane, and mansions. At least $25 million was used to keep up a lavish lifestyle for the men.
In the indictment, they are looking to seize 26 luxury cars, one boat, nine properties, a 23-carat diamond bracelet, and 7- and 9-carat diamond rings. All three men face charges of wire fraud, identity theft, money laundering, and conspiracy. If they receive the convictions, they will face up to 20 years in federal prison.