Feds Break Up $364 Million Ponzi Scheme

Three men were charged by federal officials for running a $364 million Ponzi scheme, allowing them to live a luxurious lifestyle while scamming hundreds of people across the country. Kevin Merrill, Jay Ledford, and Cameron Jezierski are facing charges of conspiracy, wire fraud, identity theft, and money laundering.

Officials say the three men convinced investors to give them money so they could buy consumer debt portfolios, which they would profit off of by collecting the money owed or by reselling the debt to other companies. While the men did engage in some legitimate investing, a complaint from the SEC said that it was "dwarfed by the fraudulent scheme."

Authorities said that the men used the money to purchase high-end luxury cars, jewelry, multiple properties, and a boat. They also lived like high rollers, blowing $25 million at casinos. 

To cover their misuse of funds the three men set up fictitious companies in Texas and used money from other investors to pay back others who had invested.

The three men could face over 40 years in prison if they are convicted. 

Photo: Getty Images


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