A Dothan man has been sentenced to 90 months in prison for orchestrating a multimillion-dollar Ponzi scheme that targeted over 100 individuals. Edward Lincoln Forehand, 68, was found guilty of securities fraud, mail fraud, wire fraud, and money laundering.
The scheme, which took place between 2006 and November 2009, involved Forehand’s business ‘USA Marketing.’ He solicited investments from people in South Alabama and the Florida Panhandle, promising unusually high returns.
However, instead of sending the money to the actual business, Elite Marketing, Forehand used it to pay prior investors and buy property and other items for himself. He received $6.2 million from investors but only sent $1,605,790 to Elite, while promising payouts of over $19 million.
Forehand also concealed the true identity of Elite’s owner, Vicky Yeager, who had two prior convictions for fraudulent conduct. After Yeager’s death in November 2009, Forehand stopped sending investor money to Elite, resulting in losses of approximately $2,991,654 for 87 investors.
‘The sentence today vindicates the victims who lost money due to Edward Forehand’s fraud,’ said Louis V. Franklin, Criminal Chief at the U.S. Attorney’s Office. ‘His 90-month term of imprisonment provides a necessary punishment for his role in orchestrating and carrying out a years-long, multimillion-dollar Ponzi scheme.’
The case was investigated by the Alabama Securities Commission, the FBI, and the Dothan Police Department, with assistance from the United States Marshal Service. It was prosecuted by Special Assistant U.S. Attorneys Steve P. Feaga and Gregory M. Biggs of the Alabama Securities Commission, and Assistant U.S. Attorneys Jared Morris and Tommie B. Hardwick.
Defendant: Edward Lincoln Forehand
Criminal Charges: Securities fraud, mail fraud, wire fraud, money laundering
City and State: Dothan, Alabama
Exact Date: November 2009
Sentence: 90 months in prison
Dollar Amounts: $6.2 million received from investors, $1,605,790 sent to Elite, $19 million promised in payouts
Related Federal Cases
- Merrill Lynch, Pierce, Fenner Smith Inc., Securities Fraud, New York 2010 · Illinois
- Derrick Gadsden and David Gadsden, Wire Fraud Conspiracy, Alabama 2014 · Florida
- Baba Nadimpalli, Securities Fraud, California 2022 · Florida
- Mykia L. Henderson, Conspiracy to Commit Wire Fraud and Aggravated Identity Theft, Alabama 2024 · Florida
- Edward James Mitchell Jr., Mortgage Fraud, Missouri 2023 · Florida
Key Facts
- State: Alabama
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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