In a recent article, it was revealed that Russell Allen Erxleben, a 56-year-old
former player for the University of Texas Longhorns and the New Orleans
Saints, has been indicted on charges related to an alleged $2 million
Ponzi scheme. Erxleben faces charges of securities fraud, money laundering, and wire
fraud and is being held in custody awaiting further court proceedings.
According to the indictment, Erxleben allegedly lured investors in with
false promises regarding investments in artworks and post-WWI gold-bearer
bonds through several companies, including LRE Holdings, WALTEC (“We
All Like to Earn Cash”) Consultants, and the MDM (“Million
Dollar Man” or “My Damn Money”) Group. Unfortunately,
Erxleben has been accused of luring in investors with these fraudulent
investments and then paying off prior investors with the funds taken in
from new investors in the alleged scheme.
This is not the first time Erxleben has been in trouble for allegedly duping
investors, either. In 1999, he spent five years in federal prison for
alleged securities fraud. Prosecutors in the current case say that Erxleben
failed to tell his new investors about his securities fraud charges in
the past. Prosecutors asked the Court to hold Erxleben without bail on
the grounds that he may hinder the investigation or be a flight risk.
It seems like there’s a new Ponzi scheme uncovered in the news every
day, and investors should be wary. The securities fraud lawyers with Meyer
Wilson can assist you with any questions about a potential Ponzi scheme
claim and other investment fraud issues. You can reach
our office or fill out a confidential
online contact form today.