Economy

nitpicker

(7,153 posts) Sat Oct 13, 2018, 06:10 AM Oct 2018

Founder of Bogus Green Energy Firm Convicted of Running a $54 Million Ponzi Scheme

https://www.justice.gov/usao-edpa/pr/founder-bogus-green-energy-firm-convicted-running-54-million-ponzi-scheme

Department of Justice
U.S. Attorney’s Office
Eastern District of Pennsylvania

FOR IMMEDIATE RELEASE
Friday, October 12, 2018

Founder of Bogus Green Energy Firm Convicted of Running a $54 Million Ponzi Scheme

PHILADELPHIA – U.S. Attorney William M. McSwain announced that Wayde McKelvy, of Colorado, was convicted by a jury of the following crimes: Conspiracy to Commit Wire Fraud (one count); Wire Fraud (seven counts); Conspiracy to Engage in Securities Fraud (one count); and Securities Fraud (one count). The trial was held before United States District Judge Joel H. Slomsky.

The government established at trial that McKelvy and his co-conspirators ran an elaborate Ponzi scheme operating as Mantria Corporation, which received more than $54 million in fraudulently obtained new investor funds. The co-conspirators promised investors huge returns, as high as 484%, for securities investments in supposedly profitable business ventures in real estate and green energy. In reality, Mantria was a classic Ponzi scheme in which new investor money was used to pay “returns” to early investors, and the business generated meager revenues and no actual profits.

To induce investors to invest money, McKelvy and his co-conspirators repeatedly made fraudulent representations and material omissions about the economic state of Mantria. McKelvy also promoted himself as a financial wizard through aggressive marketing tactics, even though he had little financial acumen and was an unlicensed securities salesman. McKelvy operated what he called “Speed of Wealth” clubs, which advertised on television, radio and the Internet, held seminars for prospective investors, and promised to make them rich. During those seminars and other programs, McKelvy lied to prospective investors to dupe them into investing in Mantria.

Mantria, based in Bala Cynwyd, Pennsylvania, sent McKelvy “commissions” via wire transfer to an entity he controlled called “Retirement TRACS, LLC.” Mantria also used wire transfers to pay for other portions of the Ponzi scheme, including payments for both the real estate and green energy projects. When the SEC shut down Mantria in November 2009, the pyramid scheme collapsed and was exposed.
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