Wed Oct 27 2021
Larry Roberts has pleaded guilty in the Fractac Ponzi factoring scheme.
Larry and father Earl embezzled $800,00 promising a 10T% annual return. They continued to sell the scheme even after they ceased factoring invoices.
Frauds occur during positive social mood which has driven stock markets to new highs. Investors forget the if it sounds too good to be true, it probably is not maxim. Greed rules the day casting good judgement aside.
Earl Roberts Sr., 77, launched Factac in 2000. Larry Roberts, 51, had joined the business by 2012.
Around late 2016, Factac ceased factoring invoices and receivables in the volume necessary to support the returns promised to investors, according to Larry Roberts’ plea agreement.
Nevertheless, the plea says, Larry Roberts assisted his father in continuing to market Factac to new investors.
They told investors that Factac was still operating profitably and that it would pay 10 percent annual returns.
Multiple people invested with Factac from December 2016 through February 2018. But instead of using that money to factor invoices and receivables, the father-and-son team used the money to pay back previous investors and for personal expenses.
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