PHILADELPHIA – Wayde McKelvy, a 59-year-old man from Aurora, Colorado, has been sentenced to 18 years in prison for operating a $54 million Ponzi scheme in one of the largest green energy frauds in U.S. history.
According to Acting United States Attorney Jennifer Arbittier Williams, McKelvy was convicted after trial of seven counts of wire fraud, conspiracy to commit wire fraud, securities fraud, and conspiracy to engage in securities fraud. The government established at trial that McKelvy and his co-conspirators ran an elaborate Ponzi scheme operating as Mantria Corporation, which received more than $54 million in fraudulently obtained new investor funds.
The group promised investors huge returns, as high as 484%, for securities investments in supposedly profitable business ventures in real estate and green energy. In reality, Mantria, based in Bala Cynwyd, PA, was a classic Ponzi scheme in which new investor money was used to pay “returns” to early investors, and the business generated meager revenues and no actual profits.
To induce investors to invest money, the defendant and his co-conspirators repeatedly made fraudulent representations and material omissions about the economic state of Mantria. McKelvy also promoted himself as a financial wizard through aggressive marketing tactics, even though he had little financial acumen and was an unlicensed securities salesman.
McKelvy operated what he called “Speed of Wealth” clubs, which advertised on television, radio and the Internet, held seminars for prospective investors, and promised to make them rich. During those seminars and other programs, McKelvy lied to prospective investors to dupe them into investing in Mantria. When the SEC shut down Mantria in November 2009, the pyramid scheme collapsed and was exposed.
McKelvy’s co-conspirators, Troy Wragg and Amanda Knorr, who met as Temple University students, were previously sentenced for their involvement in this scheme to 22 years and two and a half years in prison, respectively.
“This case is a classic example of the warning: if it seems too good to be true, it probably is,” said Acting U.S. Attorney Williams. “McKelvy is nothing more than a twenty-first century snake oil salesman, with all of the trappings to make him appear to be a legitimate businessman. The defendant is clearly a danger to the investing public and deserves to be in prison for a very long time, as the government demonstrated at trial.”
McKelvy was ordered to pay $37 million restitution and will serve five years of supervised release after his prison term. The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Robert Livermore and Sarah Wolfe. The U.S. Attorney’s Office appreciates the assistance of Securities and Exchange Commission.”}
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Key Facts
- State: Pennsylvania
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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