Frank Lynold Mercado, Investment Fraud, North Carolina 2024

CHARLOTTE, N.C. – In a damning verdict, Frank Lynold Mercado, 27, of Charlotte, has been sentenced to 41 months in prison followed by two years of supervised release for defrauding over 100 victims of more than $700,000 through a fraudulent investment scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

According to court documents and court proceedings, from July 2019 to December 2022, Mercado executed an investment fraud scheme in which he caused more than 100 investors to sustain nearly $700,000 in losses. Mercado induced the victims – many of whom were his friends, former co-workers, and other social acquaintances – to invest their money by holding himself out to be an expert in options trading with years of experience and a successful track record.

As part of the scheme, Mercado falsely represented to victim investors that he would use their money for options trading and similar investments through his hedge fund, Tiger-Wolf Capital, LLC (Tiger-Wolf Capital). Instead of investing the funds as promised, Mercado used a portion of the money to make Ponzi-style payments to investors, and to fund his personal lifestyle, including to make large credit card payments and pay for personal expenditures such as Airbnb rentals, restaurants, and bars.

Court documents show that with the money that he did invest, Mercado suffered trading losses and then lied to investors about the performance of their investments. For example, Mercado periodically sent updates to victim investors through emails, text messages, or screenshots of purported account portals that reflected fictitious trading gains. He also made false and fraudulent statements to investors about substantial returns on their investments in order to induce his victims to invest additional money with him and/or to leave their current investments with him.

On June 12, 2022, Mercado pleaded guilty to wire fraud. He will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility.

As part of the sentencing, Mercado was also ordered to pay $709,690 in restitution. U.S. Attorney King commended the FBI for their investigation of the case and thanked the U.S. Securities and Exchange Commission for their coordination and assistance.

The case was prosecuted by Special Assistant U.S. Attorney Eric Frick of the U.S. Attorney’s Office in Charlotte.

Defendant/Respondent: Frank Lynold Mercado

Criminal Charges: Wire Fraud

City and State: Charlotte, North Carolina

Exact Date: June 12, 2022 (plea), May 30, 2024 (SEC announcement), and May 30, 2024 (sentencing)

Sentence or Outcome: 41 months in prison followed by two years of supervised release and ordered to pay $709,690 in restitution

Dollar Amounts: $700,000+

MORE FEDERAL CRIME NEWS

White Collar Crime

Craig Larsen, Interstate Transportation of Money Obtained by Fraud, New Jersey 2016

Jan 26, 2016

White Collar Crime

Kevin Deiter, Wildlife Poisoning, South Dakota 2020

May 13, 2020

White Collar Crime

Magar Edward Magar, Unlawful Water Pollution in the First Degree, Oregon 2016

Apr 23, 2015

White Collar Crime

James D. Moody, Victoria Hawkins, Angela Bowser, Theft by Deceit, Ohio 2018

Dec 11, 2017