- Federal prosecutors have charged three men in connection with an alleged $364 million Ponzi scheme that could have more than 400 victims nationwide.
- The men were indicted on charges of conspiracy, wire fraud, identity theft, and money laundering.
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A Bugatti Veyron, a Gulfstream private jet, and a $330,000 diamond ring: Feds charge 3 men for alleged $364 million Ponzi scheme to fund lavish lifestyle
The alleged fraudsters stole at least $85 million of the investor funds to purchase a number of high-end cars, diamond jewelry such as a 7-carat ring, luxury real estate, a share in a jet plane, and membership to a private fitness club.
The three alleged fraudsters — promised to pay investors significant profits from the purchase and resale of consumer debt portfolios, but in fact, they "
Department of Justice US Attorney’s Office in the District of Maryland said:
According to the SEC, Ledford misappropriated at least $40 million. That includes the transfer of at least $17 million to personal bank accounts, and the purchase of: "a $368,000 Ferrari, a $330,000 seven-carat diamond ring, and a $168,000 23-carat diamond bracelet, while transferring $13 million to casinos."
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Merrill misappropriated at least $45 million, according to the SEC. The SEC said:
"He transferred over $7 million to his personal bank accounts, spent $10.2 million on at least 25 high-end automobiles (including a 2008 Bugatti Veyron, a 2014 Pagani Huayra Diablo, a 2014 Ferrari F12 Berlinetta, a 2017 Rolls Royce Dawn, and multiple other models made by Ferrari and Lamborghini), $5.5 million toward the purchase of a house in Naples, Florida, over $2 million for home renovations, $500,000 for an interest in a Gulfstream 200 private jet, a $100,000 club membership in Naples, $350,000 on a boat, and transferring approximately $1 million to casinos.
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