Ferrari red with open vertical side doors.(Photo: Ferrari)

Three men have been indicted in a so-called $ 364-million ponzi scheme, with more than 400 victims funding their lavish lifestyle, with luxury cars, expensive homes and expensive jewelery, federal officials said. .

Kevin Merrill, 53, of Towson, Maryland; Jay Ledford, 54, of Westlake, Texas, and Las Vegas; and 28-year-old Cameron Jezierski of Fort Worth, Texas, face charges of conspiracy, electronic fraud, identity theft and money laundering as part of the ploy that officials have called "one of the largest ever loaded in Maryland. "

According to the indictment, Merrill and Ledford prompted investors to buy consumer debt portfolios "through a complex network of lies," US lawyer Robert K. Hur said Wednesday in a statement.

Consumer debt portfolios can include credit card debt, student loans and auto loans, the US Attorney's Office in Maryland said.

Merrill and Ledford would have promised to make money by collecting payments on these debts or by selling the packets for profit.

To attract unknown investors, the men misled their victims and indicated how much they had bought the portfolios, how much of their money they had invested and how well they had succeeded, the US Attorney's Office said.

"Sometimes, according to the indictment, there was no underlying portfolio bought with investors' money," the office said in a statement.

While men occasionally bought and sold debts, their legitimate operations were "overshadowed by the fraudulent scheme," according to a SEC complaint.

The men hid their scheme with fake businesses and bank accounts and paid investors with funds from other victims rather than with real profits, the US Attorney's Office said.

According to the SEC, Merrill and Ledford have transferred millions to their personal bank accounts. Among their extravagant purchases: Ferrari, Lamborghini, Rolls Royce, nine properties, 7 and 9 carat diamond rings, a 23 carat diamond bracelet and an interest in a private jet.

Merrill, Ledford and Jezierski each have a maximum jail term of 20 years for wire fraud charges, while Merrill and Ledford incur 20 years each for money laundering charges, said the bureau US Attorney.

The FBI has urged the public to contact [email protected] if they think they may be victims of the massive project.

"Most of these investors are only learning that they have been victims," ​​Hur said.

Follow Ryan Miller on Twitter @RyanW_Miller

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