Katie Lynn Mancuso, Ponzi Scheme, Tennessee 2021

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Tennessee Woman Charged in Ponzi Scheme

NASHVILLE – Katie Lynn Mancuso, 40, of Nashville, is facing federal charges for her alleged role in a Ponzi scheme that duped investors out of more than $2.8 million, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee.

Mancuso, the owner of Gray Area Marketing, purportedly a sports marketing agency representing various famous athletes, solicited funds from at least 26 investors between June 2017 and February 2021, promising a rate of return between 15%-25%. The scheme, however, was a ruse, with Mancuso overstating Gray Area’s assets and receivables, and providing fake invoices that falsely reflected money owed to the company by vendors such as Nike, Oakley, and Under Armour.

According to the charging document, Mancuso generated fraudulent invoices and emails to make her business appear legitimate, and even forged the signature of an attorney on a fraudulent attorney-client representation and forged the signatures of another individual on a purported contract.

Using funds from other investors, Mancuso repaid some of her victims, but the total loss to investors was more than $1.1 million. The money was used to finance her lavish lifestyle, including paying her living expenses, staying at hotels, and obtaining plastic surgery.

If convicted, Mancuso faces up to 20 years in prison for wire fraud and up to 30 years in prison for bank fraud. The case was investigated by the FBI, with Assistant U.S. Attorney Kathryn W. Booth prosecuting the case.

The charges against Mancuso are merely accusations, and she is presumed innocent until proven guilty in a court of law.

Gray Area Marketing’s purported contracts with professional athletes were a key part of Mancuso’s scheme to deceive investors. However, these claims have been discredited, and the company’s legitimacy is now in question.