Man who ran Ponzi scheme from behind North Texas prison bars gets 8 more years
The California man who operated a $1.4 million Ponzi scene from prison while serving time for another fraud conviction has been sentenced to eight more years in prison, according to a news release from the Department of Justice.
Michael David Carroll, 46, of Long Beach, California, pleaded guilty in November 2021 to wire fraud and was sentenced Tuesday to eight more years of prison and to pay nearly $1.4 million in restitution to his victims, according to the release.
“This defendant had the audacity to mount a million dollar Ponzi scheme while serving time for a prior fraud. But for a second time, his avarice caught up with him: A federal judge more than doubled his sentence,” U.S. Attorney Chad Meacham said. “The U.S. Attorney’s Office and the FBI are determined to hold accountable those who defraud honest investors.”
Court documents show that Carroll in September 2017, already 36 months into a 70-month sentence for another fraud conviction, lied to investors about how he was trying to secure funding to invest into legitimate ventures, according to the Justice Department. He admitted to pitching investors on short-term loans used to buy assets or cover obligations until longer-term financing could be found, promising 40% to 50% returns on investments in one to three months.
He deceived dozens of investors to preserve the scheme and fund “a lavish lifestyle,” according to the FBI.
He concealed the fact that he was a convicted felon and, when asked about it, claimed he had been falsely accused and that the charges had been dismissed, according to the Justice Department. He would then use new investor funds to make payments to older investors and create a false impression of their funding yielding profits.
Excess money was used to pay for things like private jet services, luxury vehicles, luxury dining and suites at NFL games.
