James Johnson, Wire Fraud and Money Laundering, New Orleans LA, 2023

Two Louisiana men, Dillon Arceneaux and Zeb Sartin, have confessed to running a multi-million dollar scam targeting a merchant cash advance company in Georgia. The pair pleaded guilty to federal charges of wire fraud and money laundering conspiracy, admitting they built a criminal enterprise on lies and fabricated documents.

The scheme, according to court filings, revolved around creating empty shell companies – businesses with no real assets or operations – and then feeding the victim company a steady stream of forged bank statements and vendor accounts. Arceneaux and Sartin weren’t working alone. The feds say Ryan Mullen, Duane Dufrene, Grant Menard, and Lance Vallo were all key players in the elaborate con.

Prosecutors detail how the group posed as legitimate brokers, using aliases to convince the Georgia company to issue cash advances. Mullen allegedly supplied the bogus documentation, allowing Arceneaux, Sartin, Vallo, and Menard to rake in millions. The money wasn’t used for any legitimate business purpose, but instead funneled through the fraudulent network and, in part, back to Mullen and Dufrene as kickbacks.

The operation wasn’t about building a business; it was about extracting cash. Once the funds were secured, the shell companies were simply shut down, leaving the Georgia company holding the bag. The total loss is estimated at a staggering $6.4 million, a sum that represents a significant blow to the victim business.

Federal investigators with the FBI and IRS-Criminal Investigation spent months unraveling the scheme, tracing the flow of money and exposing the layers of deception. The case highlights the vulnerability of financial institutions to sophisticated fraud rings and the lengths criminals will go to for a quick profit.

Arceneaux and Sartin now face sentencing in November 2023, where they could receive substantial prison time and hefty fines. Their co-conspirators also face potential charges, and the feds are likely to pursue further prosecutions to hold everyone involved accountable. This case serves as a stark warning: building an empire on fraud will ultimately crumble under the weight of the law.

The creation of these “assetless” companies wasn’t accidental. It was a deliberate tactic to deceive the victim company into believing they were funding viable businesses. The fake vendor accounts further bolstered the illusion of legitimacy, painting a false picture of ongoing transactions and financial health.

Assistant United States Attorneys are handling the prosecution, promising a thorough investigation and a firm stance against those who exploit the financial system for personal gain. The Grimy Times will continue to follow this case and provide updates as they become available.

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