Federal prosecutors have brought down the hammer on Texas men John K. Eckerd, Jr., 58, and Afif Baltagi, 45, charging them with orchestrating a $50 million Ponzi scheme involving off-the-road tires.
Eckerd, alleged to be the mastermind behind the multi-state conspiracy, is accused of defrauding more than 50 investors. From 2012 until at least late 2018, Eckerd posed as an entrepreneur with expertise in the off-the-road tire market, while Baltagi worked in logistics for a freight company with access to a storage yard where tires were stored.
The duo is said to have solicited millions from investors under false pretenses, promising returns of up to 20 percent within 180 days. They allegedly used private planes and fraudulent paperwork to dupe their victims.
Jason E. Adkins, 46, of Jackson, Ohio, a previously convicted defendant, was also named in the indictment. Todd Wilkin, 60, of Hillsboro, Ohio, another previously convicted defendant, posed as a neutral seller but worked with Adkins on the scheme. Eckerd is charged with tax fraud and conspiracy to avoid paying taxes, while he and others are accused of laundering proceeds through numerous corporate entities.
Eckerd faces up to 20 years in prison for wire fraud and money laundering, along with five years for tax fraud. His co-defendant Baltagi also faces similar penalties.
RELATED: $50M Ponzi Scheme: Texas Men Face Indictment
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Key Facts
- State: Ohio
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Organized Crime
- Source: Official Source ↗
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