Richard L. Thompson, Wire Fraud, Illinois 2023

CHICAGO — A Florida businessman has been charged in federal court with running a Ponzi scheme involving the sale of bogus investments in his real estate development company.

RICHARD L. THOMPSON, 60, induced investors to purchase shares in his real estate development company, Latten Management LLC, and to personally loan him money, on the false premise that his company owned more than two hundred acres of property in Tennessee, according to a criminal information filed Tuesday in U.S. District Court in Chicago.

Thompson took in approximately $2.1 million in the scheme, including $125,000 from an investor in west suburban Naperville, who purchased shares in Thompson’s company with funds from a retirement account, the information states.

Thompson, of Sarasota, Fla., was charged with one count of wire fraud. He will make an initial appearance before U.S. Magistrate Judge Maria Valdez on a date to be determined by the Court.

The information alleges that Thompson founded Latten Management in Florida in 2007 to develop vacation properties in Tennessee. Thompson personally purchased 54 acres of land in an area known as Green Mountain, and 15 acres in an area known as Green Ridge Park, according to the information. There were mortgages on both properties, and Thompson kept title in his name without ever transferring them to Latten Management, the information alleges.

Thompson and other individuals later purchased 217 acres, known as Catawba Peak, in another area of Tennessee, with Thompson guaranteeing payment for the mortgage loan, the information states. Thompson and the other owners defaulted on the loan when full payment came due in approximately February 2009, leaving a debt of approximately $9.8 million, according to the information. Latten Management never owned the Catawba Peak property, the information states.

From early 2009 until April 2011, Thompson offered and sold shares in his company by telling investors that it owned the three properties in Tennessee, and that the company would develop them into vacation destinations, according to the information. Thompson gave tours of Green Mountain, Green Ridge Park, and Catawba Peak to investors, but concealed the fact that Latten Management didn’t own the properties, according to the information.

Thompson caused losses to Latten investors of approximately $1,652,000. Thompson misappropriated a substantial portion of investors’ funds to pay for his own personal expenses, including his home mortgage, his family’s credit cards, electric bills, college tuition, life insurance, and a Lexus, the information states.

In order to conceal his scheme, Thompson had to continually obtain new funds in order to satisfy his existing obligations to repay investors through Ponzi-type payments, according to the information. He also publicly filed false documents with the Securities and Exchange Commission, and intentionally misled investors about the status of their investments and loans, the information charges.

One of the duped investors lived in Naperville, according to the information. That investor transferred $125,000 in personal retirement savings to an account in Sarasota to purchase shares in Latten, according to the information.

Defendant: Richard L. Thompson

Criminal Charges: One count of wire fraud

City and State: Chicago, Illinois

Date: Tuesday in U.S. District Court in Chicago

Sentence or Outcome: Currently pending

Dollar Amounts: $2.1 million in the scheme, $125,000 from an investor in Naperville, $667,000 in personal unsecured loans

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