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WEBVTT FEDERAL PROSECUTORS SAY MANY LAYERS OF DECEPTION WERE USED TO LURE IN AND KEEP INVESTORS. HIGH END CARS CONVISCATED AND HOMES IN TOWSON AND STEVENSO MARYLAND AND OTHER PLACES COULD COULD BE FORFEITED. ALL PART OF AN INVESTIGATION INTO AN ALLEGED FRAUD SCHEME. FEDERAL PROSECUTORS ANNOUNCED CHARGES AGAINST KEVIN MERRILL OF TOWSON JAY LEDFORD AND CAMERON JEZEIRSKI OF TEXAS. ALL ARE ACCUSED OF LURING AND DUPING INVESTORS IN A $364 MILLION PONZI SCHEME. >> THE DEFENDANTS DEFRAUDED THEIR INVESTORS THROUGH AN ELABORATE WEB OF LIES. BARRY HOW DID THE FEDS FIND OUT : ABOUT IT >> THIS CAME TO OUR ATTENTION THROUGH A TIP AND WE INVESTIGATED. BARRY A 14 COUNT INDICTMENT : OUTLINES HOW THE SCHEME WORKED TO ENTICE VICTIMS. THEY WERE TOLD THEY COULD MAKE MONEY THROUGH THE PURCHASE AND SALE OF CONSUMER DEBT OWED ON CAR AND STUDENT LOANS AND CREDIT CARDS. THE MEN ARE CHARGED WITH CONSPIRACY, WIRE FLAT, IDENTITY THEFT, AND MONEY LAUNDERING. >> THEY SET UP A WEB OF SHELL COMPANIES AND BANK ACCOUNTS AND FALSIFYING BAN AND WIRE TRANSFER RECORDS, COMPLETELY OUT AND OUT FABRICATING DEBT COLLECTION REPORTS AND SALES AGREEMENTS. HARRY THE VICTIMS ACCORDING TO : THE FEDS, SMALL BUSINESS HONORS, RESTAURANT OWNERS DOCTORS, LAWYERS AND RETIREES IN MARYLAND, WASHINGTON, VIRGINIA, AND LAS VEGAS. THE SECURITIES AND EXCHANGE COMMISSION HAS ALSO FILED A FRAUD COMPLAINT. AN ENFORCEMENT DIRECTOR DESCRIBED WHAT MERRILL ALLEGEDLY DID AFTER RECEIVING ONE INVESTORS $500,000 >> MERRILL, ALLEGEDLY USED MONEY FOR A 400,000 DOLLAR PAYMENT FOR A 2014 BUGATTI SPORTS CAR, MAD PAYMENTS TO PRIOR INVESTORS AN REPAID $20,000 OF HIS OWN CREDIT CARD DEB BARRY: HE IS SCHEDULED TO BE HERE AT FEDERAL COURT FOR A DETENTION HEARING TOMORROW AND IF CONVICTED ON ALL CHARGES HE AND LEDFORD COULD FACE UP TO 262 YEARS IN PRISON AND ALSO THE THIRD FACES UP TO 120 YEARS. THE FEDS ARE ASKING ANYONE WHO MAY BE A POSSIBLE VICTIM TO CONTACT THE FB

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A federal grand jury indicted three men in connection with an alleged $364 million investment fraud scheme that federal prosecutors called one of the largest fraud schemes ever in Maryland.Kevin B. Merrill, 53, of Towson; Jay B. Ledford, 54, of Westlake, Texas, and Las Vegas; and Cameron R. Jezierski, 28, of Fort Worth, Texas, were charged with conspiracy, wire fraud, identity theft and money laundering. Investigators said the defendants got investors to pay millions into the alleged scheme, and most victims don't know they are victims. According to the 14-count indictment, the men perpetrated a Ponzi scheme to defraud investors of more than $364 million."Lies (were) being told to prospective investors about almost every conceivable aspect of this scheme," U.S. Attorney Robert Hur said.The indictment alleges that the defendants enticed victims by showing them they could make money through the purchase and sale of consumer debt owed on car and student loans and credit cards."These particular defendants took steps like setting up shell companies and setting up bank accounts for those companies, fabricating debt reports and sales agreements," Hur said.According to a related complaint filed by the Securities and Exchange Commission, the victim investors included small business owners, restaurateurs, construction contractors, retirees, doctors, lawyers, accountants, bankers, talent agents, professional athletes and financial advisers in Maryland; Washington, D.C.; Northern Virginia; Las Vegas; Texas and elsewhere."This case first came to our attention through a tip, and we took that information and began to unravel the scenario based on the tip that came in to our office," said Gordon Johnson, with the FBI.The indictment alleges that Merrill, Ledford and Jezierski personally enriched themselves and concealed their diversion of $73 million of investors' funds to buy and renovate high-end homes in Maryland, Texas, Nevada and Florida. Prosecutors said the defendants purchased luxury automobiles, jewelry, boats and a share in a jet plane. Prosecutors said the defendants gambled $25 million at casinos.An enforcement director gave an example of what Merrill allegedly did with one investors' $500,000."Merrill allegedly used money for a $400,000 payment for a 2014 Bugatti sports car, made payments to prior investors and repaid $20,000 of his own credit card debt," said Stephanie Avakian, with the SEC.Prosecutors said the indictment seeks to forfeit nine properties, 26 luxury cars, one boat, interest in an aircraft, a life insurance policy, seven- and nine-carat diamond rings, and a 23-carat diamond bracelet, which were allegedly purchased with proceeds of the scheme to defraud. Six of the houses could be forfeited by Merrill if he is convicted, including a property on Circle Road in Towson and another on Greenspring Valley Road in Stevenson.Merrill is scheduled to appear Thursday in federal court in Baltimore for a detention hearing. If convicted on all charges, he and Ledford each face up to 262 years in prison. Jazierski could face up to 120 years in prison.Merrill and Ledford were ordered to be detained. Jezierski was released under the supervision of U.S. Pretrial Services.The SEC has filed a parallel civil complaint.Anyone who believed they may have been a victim or who has information concerning these charges is asked to email MerrillLedford@fbi.gov and complete a brief questionnaire.