Former UT Player Russell Erxleben Indicted for $2 Million Ponzi scheme
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.