Sidney J. Charles, Jr., Wire Fraud, Maryland 2017

Texas Man Sentenced to 2 Years in Prison for Running Ponzi Scheme in Maryland

A Texas man has been sentenced to two years in prison for running a Ponzi scheme in Maryland, according to a recent sentencing in the District Court. Sidney J. Charles, Jr., age 50, of Levelland, Texas, was sentenced to 2 years in prison followed by 3 years of supervised release for wire fraud.

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.

According to the plea agreement, starting in or around August 2009, Charles founded The Borrowing Station, LLC (“The Borrowing Station”), a Nevada limited liability company with its principal place of business in Bowie, Maryland. From at least October 2009 through at least July 2011, Charles served as the president and chief executive officer of The Borrowing Station.

Charles marketed The Borrowing Station as an established investment firm that offered significant returns on investments. From at least October 2009 through at least July 2011, The Borrowing Station, acting through its officers, employees, and agents, including Charles, orchestrated and operated a scheme to solicit investors with false promises of high rates of guaranteed return on their investments.

Between at least October 2009 through at least July 2011, in the District of Maryland and elsewhere, The Borrowing Station, through Charles and others, solicited and accepted more than $249,706.30 from at least 17 individuals and entities for the purpose of participating in a pooled investment vehicle that traded off-exchange leveraged or margined foreign currency contracts (“forex” or “foreign currency”).

Charles falsely advertised The Borrowing Station as an established, successful, and safe investment firm. The Borrowing Station website stated, for example, that The Borrowing Station “is an established company in the United States, specializing in Retirement and Education Savings.”

Charles was sentenced by U.S. District Judge Paula Xinis on September 13, 2017. The District Court also entered orders of forfeiture and restitution in the amount of $249,706.30.

Source: https://www.justice.gov/usao-md/pr/texas-man-sentenced-2-years-federal-prison-running-ponzi-scheme