MOVE OVER MADOFF FOR KEVIN MERRILL! KEVIN’S GREAT FRAUD WILL LAST 22 YEARS OF MEMORIES OF RICHES IN SLAMMER; TROPHY WIFE WANTED TO KEEP THE STASH! $364 Million Ponzi Scheme – Might set a record for Maryland Cons

Breaking News Court News Fraud Internet Crime Mail Fraud Police Beat Robbery
omaha-steaks-banners

Ponzi Scheme Promoter Sentenced to 22 Years in Federal Prison for $396 Million Scheme—The Largest Ever Charged in Maryland

Kevin Merrill Also Obstructed Justice After his Arrest; SEC Has Related Civil Action

Defrauded Investors Across the Country

 Baltimore, Maryland – U.S. District Judge Richard D. Bennett on Oct. 22, 2019, sentenced Kevin B. Merrill, 54, of Towson, Maryland, to 22 years in federal prison, followed by three years of supervised release, for conspiracy and wire fraud arising from a $396 million investment fraud scheme that operated from 2013 through September 2018, with an additional $260 million in attempted investments at the time of Merrill’s arrest.  Judge Bennett also ordered Merrill to pay restitution in the full amount of the victims’ losses, which will be determined later, but which is at least $189,166,116.  Judge Bennett will also enter an order of forfeiture, with the exact amount of forfeiture still to be determined.

The U.S. Securities and Exchange Commission (SEC) has a pending parallel civil action in this matter. 

Front Man Pleads Guilty to $550 Million Ponzi Scheme—One of the Largest Ever Charged in Maryland

TROPHY WIFE WANTED TO KEEP THE STASH!

Wife of Ponzi Scheme Perpetrator Pleads Guilty to Federal Charge for Conspiring to Remove and Conceal Assets in Violation of Court Orders

THE HUSBAND AND WIFE CRIME TEAM!
Amanda Merrill admits she and hubby talked in code so she could get the combination to the safe hidden in Florida mansion!

Removed and Attempted to Conceal Cash and Property

PONZI & WIFE

Baltimore, Maryland – Amanda Mahlstedt Merrill, age 30, of Towson, Maryland, pleaded guilty today to the federal charge of conspiracy to remove property to prevent seizure, obstruct justice, and disobey court orders. 

The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Robert W. Manchak of the Federal Housing Finance Agency, Office of Inspector General. 

“This prosecution demonstrates our commitment to the integrity of the judicial process.  When the district court enters an order in a case, we expect the affected persons to abide by the order, not conspire to remove and hide assets,” said U.S. Attorney Robert K. Hur.  “We will prosecute those, like Amanda Merrill, who hide assets which are subject to seizure, who obstruct justice, and who attempt to keep ill-gotten gains for their own benefit rather than restoring them to the victims of fraud.”

According to her plea agreement, on September 11, 2018, Amanda Merrill’s husband, Kevin Merrill, was indicted on federal charges of conspiracy to commit wire fraud, identity theft, money laundering conspiracy, and money laundering, in connection with a $394 million Ponzi scheme.  The indictment included a forfeiture allegation for $39 million, six real estate properties, 25 cars, a boat, an interest in an aircraft, an insurance policy, and jewelry.  The properties to be forfeited included the Merrills’ residence in Towson and a home on Spyglass Lane in Naples, Florida.  On September 13, 2018, the Securities and Exchange Commission (SEC) brought a civil enforcement action against Kevin Merrill, other persons and entities, and Kevin Merrill’s companies.  The Court issued a temporary restraining order freezing assets and granting other emergency relief and appointed a temporary receiver.  Anyone receiving notice of the receivership order who possessed property, business books, records, accounts, or assets of the receivership parties was directed to provide those items to the receiver.

On September 18, 2018, Kevin Merrill was arrested at his residence in Towson and agents seized jewelry, his watch collection, cars, and over $520,000 in cash, mostly from a safe.  Kevin Merrill was subsequently ordered to be detained pending trial as a risk of flight and a risk of obstruction of justice.  FBI Special Agents provided Amanda Merrill with a receipt of items taken and asked her to disclose any information to assist agents in locating items not collected at the residence.  Amanda Merrill was counseled by the FBI agents to be completely truthful in her answers and was warned against attempting to hide or move assets.  Amanda Merrill’s counsel was also provided with a copy of the restraining order and the receivership order.

Nevertheless, beginning on October 3, 2018, Amanda Merrill redeemed the points on an American Express business credit card belonging to Kevin Merrill, even though she was not an authorized user.  Amanda Merrill received 127 gift cards worth $26,075 for retail businesses such as Target, Home Depot, Nordstrom, Sephora, and Starbucks. 

On October 13, 2018, Amanda Merrill and another individual traveled by plane to Naples, Florida, to the Spyglass Lane property, which the Merrills had purchased earlier that year for $10 million.  The Merrills were captured on several recorded jail calls that day discussing Amanda Merrill’s trip to the Florida property, which they referred to in coded language as “the restaurant.”  On the recorded jail calls, Kevin and Amanda Merrill discussed how to open the safe at the property.  Amanda Merrill removed cash and other items from the home, which she placed into her purse, two large suitcases, and a carry-on bag.  She told the other individual who accompanied her on the trip that she intended to tell her attorney that she had found the safe unlocked and empty.  Video footage from BWI Airport security for October 13, 2018 shows Amanda Merrill returning from Florida rolling a carry-on bag and holding a large purse.  Video footage revealed that Amanda Merrill also retrieved two large suitcases from the baggage carousel.  American Express statements for Kevin Merrill’s business card (for which Amanda Merrill was not an authorized user) also show the purchase of plane tickets for Amanda Merrill and her companion, and payment for a rental car.  Amanda Merrill’s American Express statement shows two airline charges of $75 each for two pieces of luggage, each of which was over the 50-pound limit, for the trip from Ft. Myers, Florida to BWI.

On October 30, 2018, counsel for Amanda Merrill e-mailed a letter directed to “Government, SEC, and Receiver,” which stated, among other things, that Amanda Merrill and her companion had gone to the house in Naples, Florida and “the unlocked safe at the house was empty,” and that they had removed six boxes of children’s clothing and personal items.  The statement was false because Amanda Merrill misrepresented what had happened in Florida to her counsel and omitted the cash, the over-weight-limit suitcases, and the carry-on luggage in talking with her attorney.   

In early November 2018, FBI Special Agents executed search warrants at the Merrill homes in Towson and Naples.  In the Towson home, agents discovered approximately $15,378 in cash, $8,878 in a purse in Amanda Merrill’s bedroom, with the remainder in a closet drawer.  Agents also located the two large suitcases, which were still tagged from the trip, but were empty, as well as the six boxes of children’s clothing and personal items in the Towson home.  In the Florida home, agents used the transcription of the recorded jail call to gain access to the safe, which was empty.

According to the plea agreement, at sentencing the government will recommend that Amanda Merrill serve 12 months on electronic home monitoring with work release and restitution.  U.S. District Judge Richard D. Bennett has scheduled sentencing for January 22, 2020 at 3:00 p.m.

Kevin Merrill, age 54, of Towson, previously pleaded guilty to conspiracy and wire fraud arising from his role in a $394 million investment fraud scheme that operated from 2013 through September 2018.  Merrill faces a maximum of 40 years in prison for the wire fraud conspiracy and for wire fraud, as well as a possible fine of $500,000, or twice the gross gain, at his sentencing hearing scheduled to begin on October 10, 2019.

Kevin Merrill Also Admits to Obstructing Justice After his Arrest; SEC Has Related Civil Action

Baltimore, Maryland – Kevin B. Merrill, age 53, of Towson, Maryland, pleaded guilty today to conspiracy and wire fraud arising from a $550 million investment fraud scheme that operated from 2013 through September 2018.  Co-defendant Cameron R. Jezierski, age 28, of Fort Worth, Texas, previously pleaded guilty to his role in the scheme.  The U.S. Securities and Exchange Commission (SEC) has filed a parallel civil complaint in this matter.

The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Robert W. Manchak of the Federal Housing Finance Agency, Office of Inspector General.

“Federal prosecutors, FBI agents, and our SEC partners together interrupted an ongoing fraud scheme, with the potential to victimize even more people.  Kevin Merrill lured investors through an elaborate web of lies, duping them into paying millions of dollars into this Ponzi scheme,” said U.S. Attorney Robert K. Hur.  “The effects of this kind of fraud can be devastating.  As a result of this scheme, a number of victims have lost their life savings.”

According to his plea agreement, beginning in January 2013, Merrill and his co-conspirators perpetrated a Ponzi scheme to defraud investors of more than $394 million.  Specifically, Merrill and a co-conspirator invited investors to join them in purchasing consumer debt portfolios.  “Consumer debt portfolios” are defaulted consumer debts to banks/credit card issuers, student loan lenders, and car/truck financers which are sold in batches called “portfolios” to third parties that attempt to collect on the debts.  Merrill, using the names of collection businesses he owned, including Delmarva Capital and Global Credit Recovery, among others, falsely represented to investors that he would use the investors’ money to buy consumer debt portfolios and make money for them by (1) collecting the payments that people made on their debts or (2) selling the portfolios for a profit to other third-party debt buyers, in a practice called “flipping.”  According to the related complaint in the civil action filed by the SEC, the victim investors included small business owners, restauranteurs, construction contractors, retirees, doctors, lawyers, accountants, bankers, talent agents, professional athletes, and financial advisors, located in Maryland, Washington, D.C., Northern Virginia, Denver, Texas, Chicago, New York, and elsewhere.  As detailed in the plea agreement, Merrill admitted that the scheme caused financial hardship to at least five victims, and Merrill knew that at least one of those was a vulnerable victim.

At today’s hearing, Merrill admitted that to induce investors to participate, he and his co-conspirators falsely represented who they were buying the debt portfolios from and how much they were paying for the portfolios, whether they were investing their own funds, and their track record of success. According to the plea agreement, sometimes there was no underlying debt portfolio purchased with the investors’ money.  To conceal the truth, Merrill, Jezierski, and others created imposter companies with names similar to actual consumer debt sellers or brokers and opened bank accounts in the names of those imposter companies.  In addition, to lend credibility to the transactions, the defendants created false portfolio overviews, sales agreements which used the names and forged signatures of actual employees of the sellers, created false collections reports, and falsified bank statements and merchant account reports.

Further, Merrill admitted that he falsely represented that the monies the conspirators paid to investors were “proceeds” from collections and/or flipping debt portfolios, when in fact, the proceeds were paid from funds provided by other investors.  Merrill provided monthly or quarterly reports to investors regarding the “purported progress of the portfolio and its recovery,” which he invented.  Merrill used the proceeds of the scheme to purchase and/or renovate five high-end homes in Maryland and Florida, gamble at casinos, purchase luxury automobiles, jewelry, artwork, collectibles such as comic books and sports memorabilia, and a share in a jet plane, and support a lavish lifestyle.

Finally, Merrill admitted that while the scheme was ongoing, he met with the FBI, lied to the investigating agents, and provided false documents to the FBI.  As detailed in his plea agreement, after his arrest, Merrill attempted to obstruct justice by causing his wife to remove assets from their Naples, Florida home on October 13, 2018, and by preparing a handwritten note instructing his wife to conceal assets from the court-appointed receiver, which he intended to hold up to the glass in the detention center on December 5, 2018, when his wife visited.  These actions violated the restraining order with which Merrill was served in the criminal case, and the preliminary injunction ordered by the Court in the SEC’s civil action.

As part of his plea agreement, Merrill is required to pay restitution in the full amount of the victims’ losses and to forfeit property acquired with the proceeds of the offenses.  The SEC has appointed a receiver to marshal the assets for the benefit of the victims.

Merrill faces a maximum of 40 years in prison for the wire fraud conspiracy and for wire fraud, as well as a possible fine of $500,000, or twice the gross gain.  U.S. District Judge Richard D. Bennett has scheduled sentencing for Merrill on September 19, 2019, at 9:30 a.m., and for Jezierski on August 12, 2019, at 3:00 p.m.  Co-defendant Jay B. Ledford, age 55, of Westlake, Texas and Las Vegas, Nevada, is scheduled for a rearraignment on June 6, 2019, at 10:00 a.m.  Kevin Merrill’s wife, Amanda Merrill, age 30 of Towson, Maryland, is charged with conspiracy to obstruct justice.  No court appearance is currently scheduled for Amanda Merrill.  Kevin Merrill and Ledford have been detained since their arrest on September 18, 2018, and Amanda Merrill and Cameron Jezierski are released under the supervision of U.S. Pretrial Services.

1848 Circle Road home of Kevin B. Merrill when it was advertised for sale in 2014. Ponzi scheme indictment.

MOVE OVER MADOFF FOR KEVIN MERRILL! Three men indicted in $364 Million Ponzi Scheme – Might set a record for Maryland Cons

Scheme Believed to Have Over 400 Victims Nationwide, Including Individual, Family Offices, and Investment Groups – FBI Seeking Information Regarding Additional Victims; SEC has Filed Related Civil Complaint

Baltimore, Maryland – A federal grand jury has indicted three men on charges of conspiracy, wire fraud, identity theft, and money laundering, arising from an alleged $364 million investment fraud scheme.  The indictment was returned under seal on September 11, 2018, and unsealed on September 18, 2018, upon the arrests of the defendants.  Charged in the indictment are:

Kevin-Merril-and-Jay-Ledford-photos-from-Facebook

                Kevin B. Merrill, 53, of Towson, Maryland;

                Jay B. Ledford, 54, of Westlake, Texas and Las Vegas, Nevada; and

                Cameron R. Jezierski, 28, of Fort Worth, Texas.

The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.  A related enforcement action and complaint was announced by the U.S. Securities and Exchange Commission Co-Director of Enforcement Stephanie Avakian.

Kevin Merrill and co-conspirators paid for big toys and luxury homes with money fleeced from investors in Ponzi Scheme

“Federal prosecutors, FBI agents, and our SEC partners together interrupted an ongoing fraud scheme, with the potential to victimize even more people.  According to the indictment, the defendants lured investors through an elaborate web of lies, duping them into paying millions of dollars into this Ponzi scheme,” said U.S. Attorney Robert K. Hur.  “Most of these investors are just learning that they have been victimized.  The effects of this kind of fraud can be devastating.  We urge anyone who thinks they may be a victim to contact the FBI at MerrillLedford@fbi.gov (link sends e-mail).”

Kevin Merrill’s luxury list bought with fraudulent funds, according to the indictment.

 

Kevin Merrill luxury list part two

“The FBI takes our responsibility to investigate and pursue those who commit fraud for personal gain very seriously,” said Special Agent in Charge Gordon B. Johnson of the FBI’s Baltimore Division.   “We will continue working with our law enforcement partners to hold accountable those who use illegal means and criminal behavior to take advantage of others. We are committed to protecting investors from the illegal and deceptive practices Mr. Merrill and Ledford used to defraud investors out of their hard-earned money and savings.”

Kevin Merrill home at 27776 Sharp Road, Easton, Md. Ponzi Scheme indictment Sept 19, 2018

According to the fourteen-count indictment, beginning in January 2013, the defendants perpetrated a Ponzi scheme to defraud investors of more than $364 million.  The scheme was revealed with the arrests and unsealing of the indictment. Specifically, the indictment alleges that Merrill and Ledford invited investors to join them in purchasing consumer debt portfolios.  “Consumer debt portfolios” are defaulted consumer debts to banks/credit card issuers, student loan lenders, and car/truck financers which are sold in batches called “portfolios” to third parties which attempt to collect on the debts.  The defendants falsely represented to investors that they would use the investors’ money to buy consumer debt portfolios and make money for them by (1) collecting the payments that people made on their debts or (2) selling the portfolios for a profit to third-party debt buyers–in a practice called “flipping.”  According to the related complaint filed by the SEC, the victim investors included small business owners, restauranteurs, construction contractors, retirees, doctors, lawyers, accountants, bankers, talent agents, professional athletes, and financial advisors, located in Maryland, Washington, D.C., Northern Virginia, Las Vegas, Texas, and elsewhere.

Maryland real estate records reveal that one property owned by Kevin B. Merrill and Amanda M. Merrill is listed and taxed as not as their principal residence and is located in Talbot County, Md., at 27776 Sharp Road, Easton. The property includes a brick five-bedroom home on 37 acres of land and was assessed at $2,023,500 as of July 1, 2018. The property was sold to the Merrill’s by Norma M. Redele on May 5, 2016, for the sales price of $1.56 million dollars. Redele bought the property for $1.4 million from First National Bank of Maryland in 1998 after the bank bought the property from Robert J. Bell in 1988 for $1.2 million.

THE CHESAPEAKE TODAY Audible Edition Vol 11 No 2 perfect for commuters for keeping up with crime news

When the Merrill’s bought the Easton waterfront farm the property was described as follows in an advertisement: “Creek Bend” farm offers a wonderful setting for the discerning buyer. Within 36 +/- manicured acres, six pastures, an 11-stall barn, 120-foot pier with water, electric and boatlift, pool and over 5500 hundred square feet of well-designed and beautifully appointed living space, this offering is equipped to entertain and provide the quiet enjoyment of country living. Rural setting within close proximity to Easton. Country estate with pastures, barns, and waterfront. Nature abounds on the quiet waters of Pickering Creek.

The Merrill’s have another home located at 1848 Circle Road, Ruxton, Md. The last time the property was advertised for sale, the listing boasted the following about the 7,500 square foot, six-bedroom estate built in 1869: REDUCED!! Bring your architect, contractors and decorator and explore the possibilities of this classic Ruxton colonial – Property being sold in “As-is” condition – Generous proportions – Gorgeous 3+ acre lot – Old world charm throughout – Beautiful views – 10′ ceiling on the 1st floor – Awesome, private Circle Road location – Multiple fireplaces & more!!

The Circle Road estate in Ruxton is listed in Maryland tax records as the principal residence of Kevin B. Merrill and he is listed as the only owner of the property. According to land records, Kevin Merrill purchased the property on Dec. 22, 2014, for the price of $935,000 in an arms-length transaction from Patricia P. Onnen.

Another property owned by Kevin Merrill’s wife Amanda is located at 532 Hampton Lane, Baltimore, Md. The property is listed as residential but not the principal residence of Amanda Merrill. The Hampton Lane home was purchased on Aug. 10, 2016, from Daniel B. Wheeler in a non-arm’s length transaction for $350,000. The current assessment on the property is $420,133.

Another pricey home owned by Kevin B. Merrill is described by Zillow as: 3018 Susanne Ct, Owings Mills, MD is a single-family home that contains 4,485 sq. ft and was built in 1996. It contains 6.5 bathrooms. This home last sold for $550,000 in May 2017. The Zestimate for this house is $800,256, which has decreased by $22,030 in the last 30 days. The Rent Zestimate for this home is $5,434/mo., which has increased by $82/mo. in the last 30 days.

Maryland land records reveal that Kevin Merrill is the owner of the property located at 3018 Susanne Court, Owings Mills, not far the home from Jeffrey B. Cohen in Reisterstown. Cohen was the premier Ponzi scheme operator prior to the charges brought against Merrill and his cohorts. Cohen pleaded guilty to a Ponzi scheme he operated as the heart of his insurance business that focused on insuring bars and nightclubs.  Cohen arranged his own plea deal with federal prosecutors and attempted to have the conviction thrown out in an appeal filed with the United States Fourth Circuit Court of Appeals. His appeal was denied in April and his 37-year sentence was upheld, making it likely that he may gain a new cellmate from the charges brought against Merrill and his co-defendants should they be convicted.

The Susanne Court property of Merrill is listed as residential and not the principal residence of Kevin Merrill. Situated on 1.2 acres, Merrill paid Kent E. Baklor $550,000 on May 25, 2017, in an arm’s length transaction.  With nearly 5,000 square feet, the home has six bedrooms.

Topping off the list of Maryland mansions for Kevin Merrill is a property located at 1718 Greenspring Valley Road in Stevenson, Md.  The nearly 10,000 square foot home situated on over eight acres, was bought by Merrill from CT Customs LLC for $1,545,000. The property was bought in 2015 from HSBC Bank for $724,900. The property is declared as the principal place of residence of Kevin B. Merrill.

Since Maryland land records list both the Circle Road property as well as the Greenspring Valley Road, Merrill might find himself in a legal morass with the State of Maryland as well due to tax rules allowing only one property designated as a principal place of residence and other properties taxed at a higher rate when used as either commercial or non-owner occupied.

The indictment alleges that in order to induce investors to participate, the defendants falsely represented who they were buying the debt portfolios from and how much they were paying for the portfolios; whether they were investing their own funds, and their track record of success. At times, according to the indictment, there was no underlying debt portfolio purchased with the investors’ money.  To conceal the truth, the defendants created imposter companies with names similar to actual consumer debt sellers or brokers and opened bank accounts in the names of those imposter companies.  In addition, to lend credibility to the transactions, the defendants created false portfolio overviews, sales agreements which used the names and forged signatures of actual employees of the sellers, created false collections reports, and falsified bank wire transfer records and bank statements.

Further, the indictment alleges that the defendants falsely represented that the monies they paid to investors were “proceeds” from collections and/or flipping debt portfolios, when in fact, the proceeds were paid from funds provided by other investors.

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.

The indictment alleges that Merrill, Ledford, and Jezierski personally enriched themselves and concealed their diversion of $73 million of investors’ funds to purchase and renovate high end homes in Maryland, Texas, Nevada, and Florida, purchase luxury automobiles, jewelry, boats, and a share in a jet plane, gamble $25 million at casinos, and support a lavish lifestyle.

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.

If convicted, Merrill, Ledford, and Jezierski each face a maximum of 20 years in prison for the wire fraud conspiracy and for each of five counts of wire fraud.  Merrill and Ledford each also face 20 years in prison for an additional two counts of wire fraud, as well as 20 years in prison for a money-laundering conspiracy, and for each of four counts of money laundering.  Finally, Merrill and Ledford face a mandatory two years in prison, consecutive to any other sentence, for identity theft.  The defendants also face possible fines of $250,000, or twice the gross gain, for the wire fraud conspiracy and for each count of wire fraud and money laundering.  Merrill and Ledford face an additional fine of $500,000, or twice the value of the property, for the money laundering conspiracy.

The SEC has filed a parallel civil complaint in this matter.

If you believe you may have been a victim, or have information concerning these charges, please email MerrillLedford@fbi.gov (link sends e-mail) and complete a brief questionnaire.  Your responses are voluntary.  You may be contacted by the FBI

Merrill and Ledford each had an initial appearance in U.S. District Court in Baltimore and Las Vegas, respectively, on September 18, 2018, and were ordered to be detained.   Jezierski also had his initial appearance in Las Vegas and was released under the supervision of U.S. Pretrial Services.  Merrill is scheduled to have a detention hearing on Thursday, September 20th at 3:30 p.m.  Jezierski is expected to have his initial appearance in Maryland on September 24, 2018, and Ledford is expected to be brought to Maryland for a court appearance at a later date.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.