Timothy Herman, a 57-year-old man from Lake Mary, Florida, has been charged with defrauding a Peoria area investor of approximately $600,000 in a garbage business investment scam.
According to the indictment, Herman falsely represented to the victim that he had investment opportunities that would earn greater returns than could be earned from banks. He claimed that he had been in the garbage business for several years and had been very successful, but failed to disclose that he had notified his home mortgage holder in May 2013 that he had not received a paycheck since May 2012 and had depleted his savings.
Herman allegedly advised the victim that he would invest funds in a ‘Rewards Program,’ which one of his companies was developing with Republic Services, a waste management company in Arizona. He represented that he was going to retire in two years and expected a $17 million payout at that time.
After Herman represented the profitability and safety of the funds, the victim loaned $200,000 to Herman’s company, Delta Direct. Herman allegedly transferred the funds amongst his various business accounts before transferring the funds to his personal account. As part of the scheme, Herman used the victim’s funds to make monthly payments to the victim as provided in the promissory notes. After receiving the monthly payments, the victim loaned more money to Herman over a period of time.
Instead of investing the funds as represented, the indictment alleges that from 2013 to December 2017, Herman used the victim’s funds to make payments to the victim, to make mortgage payments, to pay tax liens, to make marital settlement payments and to otherwise use the victim’s money for his personal use and benefit. Herman continued his deception and to conceal his fraudulent conduct, made false statements to others, including the victim and federal law enforcement agents.
Timothy Herman, Defendant’s Name, is charged with four counts of mail fraud and nine counts of wire fraud, which carry a statutory maximum penalty of 20 years in prison and a fine of up to $250,000. He is also charged with making a false statement, which carries a maximum penalty of five years in prison. Herman will appear for arraignment in federal court in Peoria.
Members of the public are reminded that an indictment is merely an accusation; Herman is presumed innocent unless proven guilty.
The investigation was conducted by the FBI and the U.S. Postal Inspection Service. Supervisory Assistant U.S. Attorney Darilynn J. Knauss is prosecuting the case.
Key Facts
- State: Illinois
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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