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A federal grand jury has charged three men in connection with a so-called $ 364-million investment fraud scheme, federal prosecutors in Maryland said Wednesday.
Kevin B. Merrill, 53, of Towson; Jay B. Ledford, 54, of Westlake, Texas, and Las Vegas; and 28-year-old Cameron R. Jezierski of Fort Worth, Texas, have been charged with conspiracy, electronic fraud, identity theft and money laundering.
According to the indictment of 14 counts, the men perpetrated a Ponzi scheme to defraud investors of more than $ 364 million.
The indictment alleges that Merrill and Ledford have invited investors to join them in buying consumer debt portfolios. Prosecutors said the defendants had falsely represented investors that they would use investors' money to buy consumer debt portfolios and earn money for them by collecting payments made by their investors. customers or by selling portfolios to third-party buyers. a practice called reversal.
According to a complaint filed by the Securities and Exchange Commission, the victim investors included small business owners, restaurateurs, construction contractors, retirees, doctors, lawyers, accountants, bankers, talent agents, professional athletes and financial advisors. , North Virginia, Las Vegas, Texas and elsewhere.
According to the indictment, there was sometimes no underlying portfolio purchased with investors money.
To conceal the truth, the defendants created impost companies with names similar to those of sellers or brokers in consumer debt and opened bank accounts on behalf of these impostor companies, said prosecutors.
Prosecutors said the defendants had created false papers with false signatures, as well as bank transfer statements and falsified bank transfers.
The indictment alleges that Merrill, Ledford and Jezierski have personally enriched themselves and concealed their embezzlement of $ 73 million of investor funds to buy and renovate high-end homes in Maryland, in Texas, Nevada and Florida. Prosecutors said the defendants bought luxury automobiles, jewelery, boats and a share in a jet plane. Prosecutors said the defendants had staked $ 25 million on the casinos.
Prosecutors said that the indictment is aimed at confiscating nine properties, 26 luxury cars, a boat, interests in an aircraft, a life insurance policy, diamond rings of seven and nine carats and a 23 carat diamond bracelet. of the scheme to defraud.
If found guilty, Merrill, Ledford and Jezierski each incur a maximum jail term of 20 years for the electronic fraud conspiracy and for each of the five counts of electronic fraud.
Merrill and Ledford also face 20 years in prison for two counts of electronic fraud, as well as 20 years in prison for a money laundering scheme and for each of the four counts of money laundering.
Merrill and Ledford face two years of mandatory jail time for identity theft.
The defendants also incur possible fines of $ 250,000, double the gross gain, for the electronic fraud plot and for each electronic fraud and money laundering account.
Merrill and Ledford face an additional fine of $ 500,000, twice the value of the property, for the money laundering scheme.
Merrill and Ledford were sentenced to be detained. Jezierski was released under the supervision of US Pretrial Services.
Merrill is expected to have a detention hearing Thursday afternoon, Jezierski is expected to appear in court on Sept. 24 and Ledford is scheduled to appear in court at a later date.
The SEC has filed a parallel civil complaint.
Anyone who believes they have been victimized or has information regarding these charges is encouraged to send an email to [email protected] and complete a brief questionnaire.
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