Greater than 400 individuals ripped off in an elaborate funding scheme; Lots of the victims are Christians, African People
Longtime monetary fraudster Ephren Taylor and an confederate have been sentenced to almost 20 years in jail for an elaborate funding scheme that stole $16 million from greater than 400 individuals, lots of them churchgoers.
“Taylor's 'Constructing Wealth' tour did the precise reverse, victimizing a whole bunch of buyers, lots of whom had been financially ruined,” appearing U.S. Lawyer John Horn stated in a press launch. “He touted himself in church buildings throughout the nation as a socially aware investor, however his funding alternatives had been nothing greater than a Ponzi scheme designed to construct his personal private wealth. This sentence brings a measure of justice to those that stay devastated by his actions.”
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In line with Performing U.S. Lawyer Horn, the fees and different data had been introduced to the courtroom: Taylor, CEO of Metropolis Capital Company, ran a nationwide Ponzi scheme. In whole, he defrauded over 400 victims and satisfied them to take a position over $16 million. From no less than April 2009, when Wendy Connor joined Metropolis Capital, to October 2010, 278 victims had been defrauded of greater than $5.8 million.
As a part of this plan, Taylor traveled the nation on a “Constructing Wealth Tour” the place he held wealth administration seminars for church congregations and centered on the African-American and Christian communities. Throughout this tour, Taylor claimed to be a socially aware investor and falsely claimed that 20 (%) of the income had been donated to charity. One of many church buildings on the “Constructing Wealth Tour” was New Beginning Missionary Baptist Church in Lithonia, Georgia. Whereas there, Taylor and Connor met with potential buyers to debate doable investments. Greater than 80 Georgia people misplaced greater than $2 million in Taylor's scheme.
Along with Bishop Eddie Lengthy's New Beginning Missionary Baptist Church, Taylor, a 32-year-old self-proclaimed “social capitalist,” additionally focused Joel and Victoria Osteen's Lakewood Church in Houston, Texas, as beforehand reported by The Christian Submit. reported.
13 members of Lengthy's congregation filed a civil go well with in opposition to the minister, saying he was partially chargeable for their loss as a result of he had vouched for Taylor throughout his look on the church—despite the fact that he had allegedly been warned prematurely about scammers. Lengthy settled with the previous members, who misplaced round $1 million, in February 2014. The quantity of the settlement was not publicly disclosed, and Lengthy admitted no wrongdoing.
ABC Information final summer season reported on the manhunt for Taylor, who was noticed working along with his spouse at a therapeutic massage parlor in Kansas. Try the investigative report under:
Learn earlier protection of Taylor's far-reaching Ponzi scheme that focused Christians and members of the African-American neighborhood:
The complete assertion from the US Lawyer's Workplace under:
Ephren Taylor sentenced to federal jail
FOR IMMEDIATE SALE
March 17, 2015ATLANTA – Ephren Taylor II and Wendy Connor have been convicted in reference to a fraud scheme they perpetrated as officers of Metropolis Capital Company. This method has fallen sufferer to greater than 400 individuals who have invested over 16 million {dollars}.
“Taylor's 'Constructing Wealth' tour did the precise reverse, victimizing a whole bunch of buyers, lots of whom had been financially ruined,” stated appearing U.S. Lawyer John Horn. “He touted himself in church buildings throughout the nation as a socially aware investor, however his funding alternatives had been nothing greater than a Ponzi scheme designed to construct his personal private wealth. This sentence brings a measure of justice to those that stay devastated by his actions.”
“These defendants are ordinary fraudsters and world-class manipulators,” stated Particular Agent in Cost Veronica Hyman-Pillot, IRS Prison Investigation. “Taylor and Connor knew that the investments they touted had been based mostly totally on fraud and lies fueled by their insatiable greed. At present, Taylor and Connor should face the choices they made and dwell with the results.”
“This case demonstrates the far-reaching results of fraudulent funding schemes and their impression on harmless victims. The truth that Ephren Taylor took benefit of individuals in a time of respect and belief is especially heinous,” stated Reginald G. Moore, Particular Agent in Cost of america Secret Service, Atlanta Area Workplace. “At present's sentence ought to function a reminder that criminals won’t get away with making the most of unsuspecting victims with out struggling the results.”
In line with Performing U.S. Lawyer Horn, the fees and different data had been introduced to the courtroom: Taylor, CEO of Metropolis Capital Company, ran a nationwide Ponzi scheme. In whole, he defrauded over 400 victims and satisfied them to take a position over $16 million. From no less than April 2009, when Wendy Connor joined Metropolis Capital, to October 2010, 278 victims had been defrauded of greater than $5.8 million.
As a part of this plan, Taylor traveled the nation on a “Constructing Wealth Tour” the place he held wealth administration seminars for church congregations and centered on the African-American and Christian communities. Throughout this tour, Taylor claimed to be a socially aware investor and falsely claimed that 20% of the income had been donated to charity. One of many church buildings on the “Constructing Wealth Tour” was New Beginning Missionary Baptist Church in Lithonia, Ga. Whereas there, Taylor and Connor met with potential buyers to debate doable investments. Greater than 80 Georgia people misplaced greater than $2 million in Taylor's scheme.
The investments advocated by Taylor and Connor included the acquisition of promissory notes the place the invested funds could be used to assist small companies similar to laundromats, juice bars and fuel stations. Taylor and Connor misrepresented the income and earnings of those companies realizing they weren’t worthwhile.
Taylor and Connor additionally pushed by way of an funding in slot machines. Slot machines are computer systems loaded with varied video games that enable gamers to win money prizes. Metropolis Capital revealed providing supplies that falsely claimed that the typical slot machine would generate a 300% return on buyers. As a part of the fraudulent scheme, Taylor and Connor additionally promised that investments within the betting machines could be 100% risk-free.
Taylor and Connor knew that the investments he was touting weren’t worthwhile and that the buyers weren’t getting actual returns on their investments.
Beneath this scheme, Taylor and Connor inspired buyers to make use of self-directed IRAs to take a position. Lots of the victims transferred their retirement financial savings to belief corporations that act as custodians of self-directed IRAs, anticipating these funds for use to fund the investments Taylor pushed.
After the victims funded their self-directed IRAs, Taylor and Connor directed the usage of these funds. The cash was not invested as promised, however was used to pay Metropolis Capital's ongoing enterprise bills, to pay private bills for Taylor and Connor, and in some restricted circumstances to pay anticipated returns to earlier buyers.
In late 2010, the scheme collapsed and Taylor's victims misplaced nearly all of their investments.
Taylor, 32, of Overland Park, Kansas, was sentenced by United States District Decide William S. Duffey, Jr. to 19 years, seven months in jail, adopted by three years of supervised launch, and ordered to pay restitution within the quantity of $15,590,752. $81. Wendy Connor, 46, of Raleigh, North Carolina, was additionally sentenced by Decide Duffey to 5 years in jail, adopted by three years of supervised launch, the primary eighteen months of which is house confinement, and ordered to pay restitution within the quantity of $5,818,299.13. Taylor was convicted of those expenses on October 8, 2014, after pleading responsible to conspiracy to commit wire fraud. Connor was convicted of these expenses on October 8, 2014, after pleading responsible to interstate transportation of cash obtained by fraud.
This case was investigated by america Secret Service and the Inside Income Service Prison Investigation with vital help from america Securities and Change Fee.
Assistant U.S. Lawyer Christopher J. Huber prosecuted the case.
