Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
In the Courts
Maryland's Largest Ever Ponzi-Scheme: Kevin Merrill Sentenced to 22 Years in Prison for $396 Million Consumer Debt Fraud
On October 10, in the U.S. District Court for the District of Maryland, Kevin Merrill, 54, was sentenced to 22 years in federal prison following his guilty plea to charges of conspiracy and wire fraud in connection with a $396 million investment fraud scheme offering high returns on consumer debt products. He was ordered to pay at least $190 million in restitution by U.S. District Court Judge Richard D. Bennett, with the full amount of the victim's losses to be repaid still to be determined. An order of forfeiture was made, with the exact amount also still to be determined. Merrill's two co-conspirators and his wife have also plead guilty to charges relating to their roles in the scheme and subsequent obstruction of justice.
According to Merrill's plea agreement, the scheme, which operated from 2013 through September 2018, involved the use of fictitious sales agreements and other falsified documents, including quarterly reports and tax returns, provided by a co-conspirator Jay Ledford, 55, to induce investors to invest in consumer debt portfolios with Merrill's companies: Delmarva Capital and Global Credit Recovery. Merrill and Ledford, a certified accountant with offices in Texas, had been long term friends since meeting in 1999 before commencing the scheme in 2013. In the first year of the scheme, Merrill raised over $4 million from investors, far exceeding the $186,000 brought in by Ledford, at which point they agreed that Merrill would assume the "front man" sales role given his superior sales ability. Ledford continued to supply Merrill with the fictitious documents needed to lend credibility to the transactions, eventually bringing in a third co-conspirator in 2017, Cameron Jezierski, 28, to assist.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
Use of Deferred Prosecution Agreements In White Collar Investigations
This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.
How AI Has Affected PR
When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.
The DOJ's New Parameters for Evaluating Corporate Compliance Programs
The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.