Main menu

Pages

A Las Vegas man has been charged with running a sports betting Ponzi scheme that stole $8.5 million from victims.Usaondo

featured image

Matthew J. Turnipseede, 49, of Las Vegas, Nevada, today defrauded approximately 72 investors in the Northern District of Ohio and elsewhere out of more than $8.5 million, doubling their profits. He was indicted on 13 counts using a promised Ponzi scheme. Numerical profits achieved through various sports betting businesses.

Defendants were formally charged with 12 counts of wire fraud and 1 count of email fraud.

According to the indictment, from March 2015 to May 2021, defendants induced victims to invest in companies they owned, namely Edgewize LLC, Moneyline Analytics and Moneyline Analytics Dublin Branch., Another company founded by Turnipseede falsely claimed that investor funds were used for sophisticated sports betting, following an algorithm that generated double-digit earnings.

None of these companies generated the promised profits, and instead the defendants used investor money to maintain their businesses, seek new sources of funding, and repay previous investors, according to the indictment. and covered personal expenses.

The indictment states that the defendant has provided the victim’s investor with an operating contract in which he states that all money invested will be used solely for betting on sporting events and that the defendant will not be compensated for making the bet. claimed to not be paid out, but claimed to retain a portion of the wager.Profit on winning.

To perpetuate the scheme, the defendants regularly emailed victims fraudulent financial statements, claimed to make substantial profits from their investments, and hired an accounting firm to extort money from the defendants. I have been accused of creating IRS forms based on fraudulent figures provided to the company. The indictment alleges that defendants’ sports betting never generated the profits promised to investors and that the information provided to accounting firms was fraudulent. When attempting to withdraw in full, defendants are alleged to have used other victims’ donations to cover the costs.

It is also alleged that defendants used investor funds to pay for personal expenses such as family vacations to Disneyland and Hawaii, spa treatments, multiple vehicle leases, and country club memberships. increase.

An indictment is just an indictment and does not constitute evidence of guilt. Defendants are entitled to a fair trial, and it is the government’s responsibility to prove guilt beyond reasonable doubt.

If convicted, the defendant’s sentence is determined by the court after considering factors specific to the case, including the defendant’s criminal record, the defendant’s role in the crime, if any, and the characteristics of the offense . In either case, the term of imprisonment does not exceed the statutory maximum. In most cases it will be less than the maximum value.

The case was investigated by the Cleveland FBI. The case is being prosecuted by Assistant U.S. Attorneys Erica D. Barnhill and Brian McDonagh.