Missouri Man Pleads Guilty to $2.2 Million Ponzi Scheme
A Missouri man has pleaded guilty in federal court for his involvement in a
Ponzi scheme. Carl R. Todd, 58, of Raymore, pleaded guilty to conspiracy to commit
wire fraud before U.S. District Judge Gary A. Fenner on March 10, 2011.
Mr. Todd admitted that he became involved in the Ponzi scheme in 2004. He has been accused of duping 31 investors, many of which are elderly, out of a total of $2,582,253. Mr. Todd described his program to potential investors as a “fractional lending” program. Unfortunately for the victims, only $348,842 of that money was ever returned to them.
Mr. Todd’s bank trading program sales were unregistered, non-exempt securities. In addition, he was not registered to sell securities in the state of Missouri.
The Missouri Secretary of State Securities Division ordered Mr. Todd and his company, CRT Enterprises, to cease and desist from the sale of unregulated securities in the state in October 2006.
Part of Mr. Todd’s plea agreement includes the forfeiture of over $2.2 million to the federal government.
Mr. Todd could get up to five years in a federal prison with no parole. He also could be subject to a $250,000 fine and ordered to pay restitution. A sentence hearing has yet to be scheduled.