Russell Allen Erxleben, Ponzi Scheme, Texas 2024
Russell Allen Erxleben Sentenced to 90 Months in Federal Prison
Austin, TX - In a significant blow to white-collar crime, 57-year-old Russell Allen Erxleben of Dripping Springs, TX, was sentenced to 90 months in federal prison followed by three years of supervised release and ordered to pay restitution for implementing a Ponzi scheme involving an estimated $2 million.
According to court records, Erxleben pleaded guilty to federal wire fraud and money laundering charges in December. Between 2005 and October 2009, Erxleben devised and implemented a scheme to defraud and obtain money from investors by the use of fraudulent pretenses, representations, and promises.
Erxleben used several companies, including WALTEC Consultants, LRE Holdings, and The MDM Group, to promote investments in fraudulent ventures, including investments in post-WWI German government gold bearer bonds and a work of art purportedly by Paul Gauguin. By pleading guilty, Erxleben admitted that he used investment proceeds for the benefit of himself and his family, to pay purported dividends to previous investors, and to fund other undisclosed endeavors, contrary to promises and representations made by the defendant.
In furtherance of the fraudulent scheme, Erxleben made various wire transfers using numerous financial accounts which were opened and maintained by others in an effort to avoid detection by authorities.
This investigation was conducted by the Internal Revenue Service-Criminal Investigation and the Texas State Securities Board along with assistance from Homeland Security Investigations (HSI). Assistant United States Attorneys Matthew Devlin and Alan Buie prosecuted this case on behalf of the Government.
Russell Allen Erxleben, 57, of Dripping Springs, TX, was the defendant/respondent in this case.
The exact criminal charges were federal wire fraud and money laundering charges.
The city and state where this case took place were Austin, TX.
The exact date of the sentencing was not specified, but it occurred in 2024.
The sentence or outcome was 90 months in federal prison followed by three years of supervised release and ordered to pay restitution.
The estimated dollar amount involved in this Ponzi scheme was $2 million.
Key Facts
- State: Texas
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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