Edward May Indicted in Ponzi Scheme

Edward May, a 73-year-old resident of Michigan, has been indicted in a ponzi scheme that has been valued at around $200 million. He faces nearly 60 counts of mail fraud — each of which is a felony that calls for up to 20 years in prison. So theoretically, May faces up to 1,200 years in prison.

“Today’s charges allege a financial fraud and abuse of trust on a massive scale,” said Terrence Berg, U.S. Attorney. “Managers of investor funds owe a high duty to those who trust them to steward their savings with care and integrity. If they abuse their customers’ funds and make false statements in the process, we will investigate thoroughly and take appropriate action.”

Allegedly, May formed in excess of 150 LLCs and created a ponzi scheme based in the telecommunications industry. Investors believed that May would give monthly returns of up to $100,000. But, as with all ponzi schemes, things were too good to be true.

Andrew G. Arena, the Special Agent in Charge, said that this type of illegal activity is watched more closely than ever.

“With losses totaling over $40 billion per year, combating Securities and Commodities Fraud remains a priority for the FBI,” said Arena. “The nation’s economy is increasingly dependent on the success and integrity of the securities and commodities markets. As a result, there is a very real need to diligently prosecute criminal activity in the markets, which the FBI is uniquely positioned to investigate. In an effort to meet this need, the FBI remains committed to investigating and preventing all forms of Securities and Commodities Fraud.”

FBI (Image: Flickr)