Roxboro, NC – Treyton Thomas, a man who pitched himself as a Harvard-educated investment guru, will spend the next 21 years and 10 months behind bars. Judge Dever sentenced Thomas to 262 months’ imprisonment after he was convicted of a multi-million dollar investment fraud and income tax evasion scheme that ripped off his own family and unsuspecting investors. The sentence, handed down after a protracted investigation, barely scratches the surface of the devastation Thomas wrought.
The scheme, detailed in a 21-count indictment, centered around Thomas’s exploitation of NC&VA Warranty, his father’s used car warranty company. Thomas falsely claimed to be making conservative investments in U.S. Treasury Bills with company funds, funds belonging to customers, and even money from his wife and father-in-law. In reality, he was gambling with their money in the volatile commodities and futures markets. To cover his tracks, Thomas flooded victims and financial institutions with fabricated bank and brokerage statements, a paper trail built on lies.
The fraud didn’t stop there. Thomas also secured approximately $1.9 million in fraudulent loan proceeds by presenting the same falsified documentation to lenders. The indictment revealed a callous disregard for his victims, with over $1.6 million of their stolen funds diverted to cover Thomas’s personal expenses – a lavish lifestyle built on deceit and the financial ruin of others. The U.S. Attorney’s Office and the IRS are collectively owed significant restitution as a result of his actions.
But the initial indictment was just the tip of the iceberg. A second indictment charged Thomas with six counts of income tax evasion for the years 2010 through 2015, and two counts for failing to disclose foreign bank accounts. For two decades, Thomas allegedly avoided filing income tax returns and paying taxes, utilizing a complex network of offshore entities in the Cayman Islands, British Virgin Islands, and Nevis to conceal his income. He employed nominees from offshore corporation management companies and even created “ghost” employees to create the illusion of a legitimate, thriving investment fund.
During the sentencing hearing, several victims detailed the profound financial and emotional toll Thomas’s crimes had inflicted upon them. Despite pleading guilty, the Court found that Thomas attempted to obstruct justice and refused to grant him a reduced sentence for acceptance of responsibility. Judge Dever ordered Thomas to pay approximately $7.3 million in restitution to the victims, the IRS, and the U.S. Attorney’s Office, and to forfeit an additional $7.3 million to the United States. It’s a steep price, but unlikely to fully compensate those he betrayed.
The investigation was a collaborative effort led by the Federal Deposit Insurance Corporation-Office of the Inspector General, the Internal Revenue Service Criminal Investigations, and the U.S. Secret Service. Assistant U.S. Attorneys Susan Menzer and John Harris successfully prosecuted the case in the Eastern District of North Carolina, bringing a measure of justice to the victims of Thomas’s elaborate and predatory scheme. This case serves as a grim reminder of the lengths to which some will go to enrich themselves at the expense of others.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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