A Jackson, Ohio man has agreed to plead guilty to orchestrating a $50 million dollar Ponzi scheme that defrauded at least 46 investors, according to the U.S. Attorney’s Office for the Southern District of Ohio.
Jason E. Adkins, 40, was arraigned in federal court on Friday, [Date] in Columbus, Ohio. Adkins faces three counts of wire fraud, six counts of money laundering, and one count of tax evasion, all punishable by up to 20 years in prison and a maximum penalty of up to five years in prison, respectively.
The scheme, which operated between 2012 and 2018, involved Adkins soliciting millions of dollars from investors under false pretenses. Investors were promised a 15 to 20 percent rate of return on investment, generally within 180 days. Adkins would sometimes pay the return on investment for the first transaction with investor victims.
However, the returns were paid off with money from later investors, a classic Ponzi scheme tactic. For example, two specific investors were paid for their initial investment of $20,000 with Adkins in 2016, but only received $320,000 total from Adkins in return for approximately $1 million worth of investments overall.
Adkins used several methods to conceal the scope of the Ponzi scheme and to minimize associated tax liabilities. He and others sent various amounts of investor funds through a long series of wire transfers to many bank accounts. He created more than 15 corporate bank accounts to receive and distribute fraudulently obtained funds from investors.
The scheme’s ill-gotten proceeds were laundered for at least five years, including by investing in front businesses created by co-conspirators. Adkins used the funds to buy cars, vacations, and property, including the construction of a pool at his personal residence and the lease of a private jet for more than $20,000.
Adkins failed to file individual income tax returns reporting his income derived from the scheme. In 2013, he earned at least $1.1 million, causing a tax loss of nearly $237,000 to the IRS. The success of the investigation was a direct result of the partnership amongst the IRS Criminal Investigation, FBI, and the U.S. Attorney’s Office.
Key Facts
- State: Ohio
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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