Ponzi Scheme Promoter Sentenced to 22 Years in Federal Prison for $396 Million Scheme--The Largest

Ponzi Scheme Promoter Sentenced to 22 Years in Federal Prison for $396 Million Scheme—The Largest Ever Charged in Maryland


Baltimore, Maryland – U.S. District Judge Richard D. Bennett today sentenced Kevin B. Merrill, age 54, of Towson, Maryland, to 22 years in federal prison, followed by three years of supervised release, for conspiracy and wire fraud arising from a $396 million investment fraud scheme that operated from 2013 through September 2018, with an additional $260 million in attempted investments at the time of Merrill’s arrest. Judge Bennett also ordered Merrill to pay restitution in the full amount of the victims’ losses, which will be determined later, but which is at least $189,166,116. Judge Bennett will also enter an order of forfeiture, with the exact amount of forfeiture still to be determined.

The U.S. Securities and Exchange Commission (SEC) has a pending parallel civil action in this matter.

The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Robert W. Manchak of the Federal Housing Finance Agency, Office of Inspector General.

“Kevin Merrill lured investors through an elaborate web of lies, duping them into paying millions of dollars into this Ponzi scheme,” said U.S. Attorney Robert K. Hur. “As a result of this scheme, a number of victims were devastated, losing their life savings. This sentence sends a strong message that federal prosecutors, federal agents, and our SEC partners will continue to work together to investigate and prosecute those who perpetrate these kind of fraud schemes for their personal gain—leaving a wave of victims in their wake.”

“Considering there were hundreds of victims and millions of dollars lost, it is fitting that Kevin Merrill will be spending a significant amount of time in federal prison,” said Special Agent in Charge Jennifer Boone of the FBI's Baltimore Division. “The FBI, and our partners, are firmly committed to holding accountable fraudsters who victimize the public by selling a false bill of goods.”

Read more: https://www.justice.gov/usao-md/pr/ponzi-scheme-promoter-sentenced-22-years-federal-prison-396-million-scheme-largest-ever