Two men from Dallas, Texas, were indicted recently on federal fraud charges. The men, both in their late 40s, were charged with 10 counts of mail fraud and a single count of conspiracy to commit mail fraud. If convicted of the alleged white collar crimes, the men could face 20 years in federal prison as punishment.
According to federal officials, the men solicited investments for an oil and gas scheme. Rather than invest the money into the oil and gas business, as they allegedly told investors they would do, the money was used for other purposes — including paying people who had invested in the project at an earlier time. Federal prosecutors said that the men’s indictment was part of the federal Financial Fraud Enforcement Task Force.
According to investigators, the scheme took in more than 7,700 investors all across the United States to the tune of about $485 million. Other stated reasons for the charges included the fact that the men did not disclose that their company’s founder had received large unsecured loans and that he had been charged in a different state with securities fraud.
While the charges are serious, the men will have the opportunity to defend themselves against the charges. People who are charged with such crimes have not just their freedom on the line but their reputations as well. An attorney with experience in white collar crime defense can be a valuable asset for people who find themselves charged with securities fraud, mail fraud or some other type of state or federal white collar crime.
Source: Loansafe.org, “Dallas Men Indicted in $485M Investment Fraud Scheme,” Evan Bedard, July 12, 2012