Eric Leon Ager, 77, Pleads Guilty to $10M Investment Fraud

Eric Leon Ager, 77, of Clearwater, Florida, has pleaded guilty to conspiracy to commit mail fraud and wire fraud in a brazen $10.3 million scam that left over 200 investors ruined. Ager faces up to 20 years in federal prison and has agreed to pay full restitution to his victims. His sentencing is scheduled for March 13, 2017, in Orlando.

The scheme centered on Tri-Med Corporation, a company Ager and his brother, Irwin Charles Ager, 84, of Lake Mary, marketed as a golden ticket to high returns through the purchase of medical receivables. The brothers served as marketing directors for Tri-Med Associates, the company’s sales arm, and were directly responsible for recruiting investors and managing a network of sales agents who pushed the fraudulent investment program.

Investors were told their money would fund the purchase of medical receivables tied to personal injury cases—debts expected to be paid from lawsuit settlements or insurance claims. Each investment was supposedly secured by a “letter of protection” from a patient’s attorney, with funds held in a third-party trust. Tri-Med even issued “Assignment of Interest Certificates” to give the illusion of legitimacy.

But it was all smoke and mirrors. Of the $17 million raised from more than 200 victims, only $2.7 million ever reached the attorney-controlled trust account. Over $6.5 million was funneled to sales agents and Tri-Med operators for personal gain and operating costs. Another $2.3 million was paid out as fake returns to lure investors deeper into the scheme.

The truth: Tri-Med never bought enough receivables to back the investments. The so-called secured certificates were fabricated. The entire operation was a Ponzi-like shell game designed to enrich the Agers and their co-conspirators while leaving ordinary people holding worthless paper.

Irwin Charles Ager pleaded guilty on December 2, 2016, to the same charges, also agreeing to pay $10.3 million in restitution. His sentencing is set for February 17, 2017. The case was investigated by the U.S. Secret Service and the Florida Office of Financial Regulation, and is being prosecuted by Assistant U.S. Attorneys Shawn P. Napier and Roger B. Handberg. Commissioner Drew J. Breakspear vowed continued crackdowns on financial predators: “We will continue to work with our partners to protect Floridians and combat financial crime.”