Thursday, January 28, 2010
North Carolina Man Pleads Guilty In $25 Million Ponzi Scheme Case
J.V. Huffman Jr., 46, of Conover, North Carolina, pleaded guilty on Tuesday to 14 counts of securities fraud and 14 counts of obtaining property by false pretenses for his role in a Ponzi-type investment fraud scheme that defrauded more than 500 investors out of some $25 million over the course of about 9 years. Upon his guilty plea, Huffman, whose scheme wiped out the savings of many of his victims, was sentenced to more than 30 years in prison. Through his company, Biltmore Financial Group Inc., Huffman lured potential investors with the promise of returns of between 10 to 15 percent on the purchase and sale of mortgages. According to prosecutors, Huffman spent his ill-gotten gains on a lavish lifestyle, including purchasing luxury cars and trucks to investing in properties across the Carolinas, and purchasing a luxury box at Bank of America Stadium, among other personal items. His victims included many members of his own church and bible study group.
Read the original SEC announcement of the complaint here.