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BALTIMORE – Three men face charges according to what federal prosecutors describe as a $ 364 million Ponzi scheme that has trapped more than 400 victims across the country.
US Attorney Robert Hur announced Wednesday at a press conference that Kevin Merrill, 53, of Towson, Jay Ledford, 54, Westlake, Texas and Las Vegas, and Cameron Jezierski, 28 years, were arrested and charged with conspiracy, electronic fraud, identity theft and money laundering.
The indictment alleges that Merrill and Ledford have urged people to buy consumer debt portfolios and have falsely represented that they would benefit from debt repayments and portfolio reversals. Prosecutors say the "revenue" paid comes from other investors, not collections or sales, as represented. They say the trio concealed their $ 73 million embezzlement and bought houses, automobiles, jewelery and bet $ 25 million.
"Most of these investors only learn that they have been victims, and the effects of this type of fraud can be devastating," Hur said in a statement.
Consumer debt portfolios consist of credit cards, cars, students and other defaulted loans that are then sold to third parties, who try to collect the bonds.
If they are found guilty, three men incur a maximum penalty of twenty years in prison for computer fraud, as well as twenty years for money laundering and two years for identity theft.
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