NC man sentenced to jail for ripping off Christians in Ponzi scheme

Lorraine Caballero Monday, March 21, 2016

Stacks of U.S. hundred dollar bills in Mexico City November 22, 2011. | REUTERS / Bernardo Montoya

A resident of Raleigh, North Carolina (NC) has been handed a 26-year jail sentence for targeting Christians in an elaborate Ponzi scheme from 2009 to 2012.

David Christopher Mayhew, 43, was sentenced to prison for wire fraud, mail fraud, money laundering, and conspiracy. He was able to bilk more than US$2 million from at least 11 Christians by offering ways to build wealth through a Ponzi scheme, according to the News Observer.

Mayhew reportedly did not work alone as he shared a home with a certain Ronald Earl McCullough, 44, who helped him carry out their illicit business. McCullough's whereabouts, however, are still unknown, the report details.

Federal prosecutors say Mayhew and McCullough called their bogus companies "Empire Investments," "God's Business Empire," and "GB Empire." U.S. postal inspector Mike Carroll said the two would approach pastors and church preachers to ask for help in reaching parishioners to offer their business. They posed as businessmen who wanted to help their fellow Christians build their wealth, the report relays.

As part of their elaborate Ponzi scheme, Mayhew and McCullough told their victims that they were part of a foreign currency trade group. They asked for a US$1 investment and promised to double the money in 30 days. Christians, however, were asked to invest lesser amounts.

To make their claims sound more credible, they used fake financial documents containing details about their investment offer. They also used trusted locals to help convince other investors to invest in their bogus enterprise.

Mayhew is now serving his time in a prison in West Virginia, the report adds.

In South Florida, two residents were also sentenced to jail for participation in an US$80 million Ponzi scheme. Paul Schumack, 58, and Laura Grande, 42 years fooled people into investing in a virtual concierge business, the Sun Sentinel reports.

The two South Florida residents reportedly convinced people to invest in dispensing machines to be placed at hotels, casinos and sports venues. However, they lied to the investors about the returns and installed only a small number of kiosks.