Kevin Edward Hargrave, Wire Fraud, Florida 2024

A Georgia man has pleaded guilty to conspiring to commit wire fraud and to defraud the United States in Florida.

Kevin Edward Hargrave, 50, of Locust Grove, Georgia, formerly known as Kevin Edward Wade, faces a maximum penalty of five years in federal prison. His sentencing date has not yet been set.

According to his plea agreement, Hargrave controlled a number of companies, including WSA Optimization Firm, Inc., that purported to offer 'credit repair services' to the public.

He promoted these services through multiple company-specific websites, radio advertising, emails, text messages, and posts on YouTube.com and other social media sites.

Among other things, these marketing campaigns promised to 'erase bad credit' information from consumers' credit reports within 90 days – 'guaranteed.'

Notwithstanding these promises, multiple customers reported to federal investigators that they paid for credit repair services, saw no such results, and were denied refunds.

An analysis of bank records establishes that more than $8 million in deposits were made into the business bank accounts controlled by Hargrave and a family member, and that significant funds were diverted from those accounts to pay for luxury vehicles, mortgage payments on their residence, personal credit cards, jewelry, items at retail stores, utilities, restaurants, and other living expenses.

For example, business funds were used to make more than $128,000 in mortgage payments on Hargrave's residence in Fernandina Beach, which he sold in 2022 for $870,000.

Similarly, approximately $300,000 in business funds were used to make down payments and monthly financing payments on automobiles owned by Hargrave and a family member, including a Lamborghini Gallardo, a Rolls Royce Wraith, a Porsche Boxster, a Range Rover, a Ford F-150, and two Mercedes Benz vehicles.

As part of his plea agreement, Hargrave agreed to pay restitution to both the IRS for the tax loss that he caused and to victims of the credit repair services/wire fraud scheme that he operated.

He also agreed to forfeit to the United States $1.5 million, as proceeds of wire fraud conspiracy.

This case was investigated by the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.

Source: https://www.justice.gov/usao-mdfl/pr/georgia-man-pleads-guilty-conspiring-defraud-irs-and-commit-wire-fraud-through