Related Federal Cases
- Tennessee Man Roman Gets 71 Months for $1.9M Ponzi Scheme · Kansas
- Greeneville Banker Miller Gets 3 Years for $1M Scheme · Tennessee
- Memphis Security Boss Chism Admits Tax Evasion · Tennessee
- Tax Cheat Tracey Brown Gets a Year in the Slammer · Tennessee
- Nashville Car Dealer Admits $550K Fraud Scheme · Tennessee
Ponzi Scheme Boss Gets 14 Years
A Tennessee man has been sentenced to 14 years in prison for orchestrating an $18 million Ponzi scheme that lasted from January 2004 to August 2006. Terry Kretz, 61, of Gallatin, Tennessee, was ordered to pay $14,784,983.75 in restitution and serve three years of supervised release after his sentence was handed down by U.S. District Judge Todd J. Campbell in the Middle District of Tennessee.
According to court documents, Kretz offered clients the opportunity to invest in Hanover Corporation through promissory notes bearing high interest rates. However, more than half of the money invested in Hanover went to repay earlier investors, pay Hanover’s salaries and overhead, and fund personal luxuries, including Kretz’s purchase of a $600,000 residential building lot and a $176,000 contribution to a church.
Kretz’s co-conspirators, Daryl Bornstein and Robert Haley, previously pleaded guilty to similar charges and are scheduled to be sentenced on August 25, 2014. The case was investigated by the FBI, IRS-CI, the Tennessee Bureau of Investigation, and the Tennessee Department of Commerce and Insurance.
U.S. Attorney David Rivera of the Middle District of Tennessee, Special Agent in Charge Todd McCall of the FBI’s Memphis Division, and Special Agent in Charge Christopher Henry of the IRS-Criminal Investigation in Nashville made the announcement today. Assistant Attorney General Leslie R. Caldwell of the Criminal Division’s Fraud Section also played a key role in the case.
The case is being prosecuted by Trial Attorney Justin Goodyear of the Fraud Section and Assistant U.S. Attorney Scarlett S. Nokes of the Middle District of Tennessee. The investigation into Kretz’s Ponzi scheme was a joint effort between several agencies, highlighting the commitment to rooting out financial crimes in the region.
Kretz’s sentence serves as a reminder that those who engage in financial crimes will face serious consequences. The Grimy Times will continue to follow this case and provide updates as more information becomes available.
As the investigation continues, it’s clear that Kretz’s actions had far-reaching consequences for his investors and the community. The sentence handed down by Judge Campbell is a step towards justice and a warning to others who may consider engaging in similar activities.
RELATED: Fla. Man Accused of Swindling Va. Doc Out of $500K
Key Facts
- State: Tennessee
- Category: White Collar Crime
- Source: DOJ Press Release ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
