Thomas Huling, Ponzi Scheme, Rhode Island 2023

RI Man Brought Down by Decade-Long Ponzi Scheme

A Rhode Island man was sentenced to 8 years in prison for running a decade-long Ponzi scheme to defraud investors and evade his taxes.

Thomas Huling, formerly of West Warwick, orchestrated the scheme between 2008 and 2018, promising investors quick and substantial returns with little or no risk.

In reality, Huling diverted investor money to fund a lavish lifestyle that included high-end vehicles, country club memberships, and vacations. He used multiple shell companies, opened over 50 bank accounts, and engaged in convoluted financial transactions to conceal his personal use of the funds.

When concerned investors contacted Huling about the status of their investments, he lulled them with false excuses and promises. To appease early investors, Huling used money raised from new investors to pay them off.

While defrauding his investors, Huling was also evading his taxes. Between 2009 and April 2018, he reported no taxable income and paid no income taxes. He used nominee bank accounts and paid for personal expenses using cash and corporate debit cards.

Huling was sentenced by U.S. District Judge Mary McElroy for the District of Rhode Island to 8 years in prison, 3 years of supervised release, and to pay restitution to the United States and victims of the fraud in an amount to be determined later.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Zachary A. Cunha for the District of Rhode Island made the announcement.

IRS Criminal Investigation and the FBI investigated the case. Acting Section Chief John Kane of the Justice Department’s Tax Division and Assistant U.S. Attorney Sandra Hebert for the District of Rhode Island prosecuted the case.

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