$40 Million Trucking Ponzi Scheme💰🚔
A previously convicted fraudster was sentenced to 212 months in federal prison for his role in multiple fraud schemes including a $40 million trucking ponzi scheme.
A previously convicted fraudster was sentenced to 212 months in federal prison for his role in multiple fraud schemes including a $40 million trucking ponzi scheme.
On November 28, Franklin Ray, a resident of Canton, Michigan, was sentenced to over 17 years in prison, as disclosed by the U.S. Attorney’s Office for the Southern District of New York.
In addition to imprisonment, Ray received a five-year term of supervised release and was directed to forfeit $42,128,912.00, along with various assets, including a 1968 Chevy Camaro. He was further mandated to pay restitution in an amount yet to be determined.
What happened? 🤔
Within a span of less than two years, Ray orchestrated four distinct fraudulent schemes. This included a $40 million Ponzi scheme that impacted hundreds of individuals, as well as schemes diverting funds intended for COVID-19 pandemic relief. Even after his arrest in March 2022, Ray audaciously continued his Ponzi scheme while on pretrial release, siphoning approximately $2 million from unsuspecting victims. The sentencing underscores the severe consequences associated with engaging in fraudulent activities.
Investors 💵
Ray deceived 275 investors into contributing at least $40 million and falsely claimed to have purchased over 2,000 trucks with these investments. Additionally, Ray pleaded guilty to charges related to a fraudulent scheme to secure $1.9 million in small business loans meant for COVID-19 relief for CSA Business Solutions LLC and another Michigan-based trucking company, despite both entities having minimal trucking operations and revenue.
Deception 🥷
Ray falsely assured investors that trucks would provide delivery services for a multinational e-commerce company or a multinational shipping company, promising investors 77% of the net income from these trucks.
In reality, CSA Business Solutions LLC, the entity operated by Ray, had minimal trucking activities and revenues. The Truck Investment Scheme involved diverting payments from new investments or other sources to fulfill obligations to earlier investors.
Courtesy: CDL Life
