Quadwealth Founders Sentenced in Multimillion Dollar Investment Fraud Scheme
SHERMAN, September 27, 2012 – A federal judge has sentenced a 33-year-old Frisco man and a 43-year old Dallas man for their roles in a multi-million dollar real estate fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jeffrey Brown and Jeremy Louder were each sentenced to five years in federal prison for conspiring to commit mail fraud following a sentencing hearing before U.S. District Judge Leonard Davis. Judge Davis also ordered that Brown and Louder pay in excess of $14 million and $17 million, respectively, in restitution to the 82 victims of their scheme. Both men were immediately remanded into federal custody following the sentencing hearing.
According to information presented in court, from 2006 through 2010, Louder and Brown controlled Quadwealth, a company that marketed itself as an exclusive financial planning and wealth management group in which membership provided access to significant investment opportunities and a team of investment advisors and other professionals. Quadwealth advertised extensively through its website and through promotions on radio stations throughout the Dallas/Fort Worth area, including on WBAP 820 AM, KRLD 1080 AM, and KBKY 680 AM. However, in order to induce individuals to invest with Quadwealth, Louder, Brown, and other individuals intentionally made numerous false representations and omissions of material fact to these individuals, causing millions of dollars in losses.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force.
President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Shamoil T. Shipchandler.
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