Man Defrauds Investors for Millions, Lives Large on Boats, Beaches, and Luxury Cars - NEW BOX OFFICE TO DAY

An individual from North Carolina acquired a boat, a beach house, and luxurious vehicles by deceiving investors as part of a $20 million Ponzi scam.

William Lamar Rhew, III from Summerfield admitted guilt to charges including wire fraud, money laundering, securities fraud, tax evasion, and failing to file a tax return. These offenses were related to his involvement in a $20 million Ponzi scheme, as stated by Acting United States Attorney Randall S. Galyon.

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As stated in legal papers, between November 2017 and December 2023, Rhew conned a minimum of 117 investors out of at least $24 million. He convinced these individuals to put their money into his firm, Chadley Capital LLC, claiming he would purchase discounted accounts receivable, then resell them for a higher price and deliver steady, impressive returns on investments.

Rhew highlighted the growing number of deals and improved underwriting criteria within the company. In promotional documents, he stated that they had achieved $300 million worth of transactions in 2023, maintained annual returns above 20%, and saw almost 74% overall growth over two years.

Every claim made by Rhew turned out to be untrue. Rather than invest the victims' funds as he had claimed, Rhew utilized their money for his own personal expenditures such as buying a boat, a beach house, and expensive vehicles. Additionally, he funneled cash into making "interest" and "withdrawal" payments to other investor-victims as part of the Ponzi scam.

Moreover, Rhew did not report almost $9 million in income to the IRS.

Under the terms of the plea deal, Rhew will be required to provide compensation to the victims totaling $14,868,815.67 and to the IRS in the sum of $3,056,936.

When sentenced, Rhew could face up to twenty years in prison, followed by a term of supervised release lasting up to three years, along with financial penalties.

“We sadly observe numerous instances of investment fraud where criminals take advantage of individuals they know and trust,” stated Galyon. “While we strive to seek justice for those affected in such cases, we urge everyone to remain vigilant against any investment opportunities that seem overly promising, regardless of who endorses them.”

Today’s admission of guilt demonstrates our agency’s commitment to preventing an individual’s actions from harming others," stated Special Agent in Charge Donald "Trey" Eakins, Charlotte Field Office, IRS Criminal Investigation. "Here, the defendant exploited his investors and cheated American taxpayers by hiding his earnings from the IRS and avoiding taxes. Our special agents will keep leveraging their financial skills to uncover and probe such investment scams in collaboration with our law enforcement allies.

It’s improbable that scammers would openly acknowledge stealing your funds and channeling them into a Ponzi scheme. However, red flags do exist: investors ought to remain cautious whenever promised extremely high returns with minimal or zero risk," stated FBI Charlotte Special Agent in Charge Robert M. DeWitt. "Ideally, the defendant’s acknowledgment of guilt will provide some solace and finality for the victims.

This guilty plea represents yet another important triumph in the quest for justice for the people of North Carolina," stated the Director of the NC SBI. "The individuals affected here are diligent workers, including numerous proprietors of small businesses. Our agency’s Financial Crimes Investigations Unit remains committed to tirelessly fighting fraud perpetrated against the residents of our state. We extend our gratitude to both the IRS and FBI for their contributions toward achieving justice for those impacted by these crimes.

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READ THE FULL STORY: A man deceives investors through a Ponzi scheme and uses the funds to purchase a yacht, a beachfront property, and high-end vehicles.

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