NEWARK, N.J. – A North Carolina man is facing federal charges for operating a massive Ponzi scheme that left at least 25 people financially ruined.
David Schamens, 64, of Greensboro, North Carolina, is charged with one count each of wire fraud, securities fraud, and money laundering in connection with the scheme.
According to the criminal complaint, Schamens started soliciting investments in 2014, promising annual returns of 12 percent to 30 percent. He directed investors to wire funds directly or transfer portions of their Individual Retirement Accounts (IRAs) to bank accounts he controlled.
Once invested, Schamens would move victim funds through several different bank accounts before using them for personal expenses, including the purchase of a house and a luxury car. He also used some of the money to repay earlier investors in the manner of a Ponzi scheme.
The scheme allegedly netted Schamens at least $6.8 million, making him one of the most egregious Ponzi scheme operators in recent history. The count of wire fraud carries a maximum potential penalty of 20 years in prison and a fine of $250,000. The count of securities fraud carries a maximum potential penalty of 25 years in prison and a fine of $1 million. The count of money laundering carries a maximum potential penalty of 20 years in prison and a fine of $500,000.
Schamens is scheduled to have his initial court appearance in Newark federal court on March 8, 2022. The case is being investigated by the Department of Homeland Security, Homeland Security Investigations, Newark Field Office, and the U.S. Securities Exchange Commission’s Division of Enforcement.
The government is represented by Assistant U.S. Attorneys Sophie E. Reiter and Anthony Torntore of the U.S. Attorney’s Office’s Cyber Crime Unit.
The charges and allegations in the complaint are merely accusations, and Schamens is presumed innocent unless and until proven guilty.
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Key Facts
- State: New Jersey
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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