Three men, all from Texas, are headed to federal prison after defrauding more than 70 investors out of more than $6 million dollars.
The investment proposal was wrapped around buying and reselling diamonds on the international market. Apparently, their problems began in the summer of 2011, when the original business plan began to fail and they could not honor their original promises.
Rather than explain the issues to their investors, they decided to lie. They also didn’t inform their clients that their investments were not secured by cash or a diamond inventory. To cover the fraud and stay afloat, the conspirators used loans, investor funds and solicited money from new investors.
Eventually, they could not meet their obligations and were indicted. One North Texas man received a 10-year sentence. Another man was given an eight-year sentence. And a third man from Houston got almost four years. All three have been ordered to pay a total of more than $13 million in restitution.
The Harris Firm urges investors to perform due diligence when they invest. Claims of unbelievable returns are often just that: untrue. If you believe you have been defrauded, please feel free to contact our firm. We have successfully pursued lawsuits for investors who have been defrauded in any number of ways.
