CHARLOTTE, N.C. – C. David Wright, a 52-year-old former schoolteacher from Iron Station, N.C., faces federal charges for orchestrating a Ponzi scheme that took over $1 million from investor victims.
According to court documents, Wright engaged in a scheme and artifice to defraud victims by making false and fraudulent representations, omissions of material facts and deceptive half-truths. Wright purportedly managed a ‘Commodity Investment Group’ based in Cherryville, N.C., which he claimed would invest money in hedge funds, commodities and Quick Trip stores.
Wright lied to investors by promising a 20-30% return on their investments, over a short period of time, when he knew that this return was not possible. He also misled his victims by falsely representing that his Commodities Investment Group owned a significant number of Quick Trip gas stations and had even sold one for $1.6 million.
According to court records, Wright did not invest the over $1 million he collected from investor victims as promised. Instead, he used the money to make Ponzi style payments to other victims and to fund his personal lifestyle. In some instances, Wright took a large percentage of victim money immediately upon the initial deposit.
Court records show that Wright was known to carry a significant amount of cash in a black duffel bag. Many local victims would invest by meeting Wright in a parking lot in Cherryville, while out-of-state victims would mail money for investment to Wright’s post office box in Cherryville.
As a result of Wright’s scheme, over $500,000 in principal owed to the victims has been misappropriated by Wright, and as of March 2013, Wright had less than $1,000 left of the investors’ fund. Wright has agreed to plead guilty to the mail fraud charge and faces a maximum of 20 years in prison and a $250,000 fine at sentencing.
As part of his plea agreement, Wright has agreed to pay full restitution to his victims, the amount of which will be determined by the Court at sentencing. The case was investigated by the U.S. Postal Inspection Service and the State Bureau of Investigation, with the invaluable assistance of the Commodities Futures Trading Commission.
The prosecution is being handled by Assistant U.S. Attorney Kurt W. Meyers of the Western District of North Carolina. Wright’s initial appearance and plea hearing have not been set yet by the Court.
Key Facts
- State: North Carolina
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release ↗
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