$50M Ponzi Scheme: Texas Men Face Indictment

COLUMBUS, Ohio – A federal grand jury has indicted two Texas men for their roles in a massive Ponzi scheme that swindled over $50 million from investors. John K. Eckerd, Jr., 58, of Dallas, and Afif Baltagi, 45, of Houston, are accused of orchestrating the scheme along with previously convicted Jason E. Adkins, 46, of Jackson, Ohio.

Eckerd, alleged to be the ringleader, presented himself as an entrepreneur with expertise in off-the-road tires, a market he reportedly controlled through various corporations. Baltagi, who worked for a freight company, had access to a storage yard where the tires were kept.

The trio and their co-conspirators solicited millions from investors, promising a 15 to 20 percent return within 180 days. They used face-to-face meetings, phone calls, texts, and emails, sometimes showcasing their inventory on private planes. The scheme involved fraudulent paperwork and large investments wired through wire transfers.

It is claimed that Eckerd and his associates rarely traded tires, repeatedly using the same ones for multiple deals, while Baltagi allegedly used his employer’s storage yard to deceive investors. Todd Wilkin, 60, of Hillsboro, Ohio, posed as a neutral third-party seller but was part of the scheme, having pleaded guilty in January 2022.

Eckerd and others are accused of laundering proceeds through numerous corporate entities and bank accounts. Eckerd also faces charges for lying on tax forms and conspiring to avoid taxes, resulting in a loss of over $1 million. He filed bankruptcy after transferring millions between accounts.

Conspiracy to commit wire fraud carries a maximum sentence of 20 years, while money laundering and tax fraud carry up to five years each. The investigation was led by the U.S. Attorney for the Southern District of Ohio and the IRS Criminal Investigation unit.