Kansas Insurance coverage Commissioner Vicki Schmidt introduced {that a} Wichita man has been sentenced to jail for securities fraud.
Jesse Wayne Harris, age 36, was sentenced in Sedgwick County District Courtroom on August 20 to 30 months in jail for 3 degree 4 felonies of securities fraud. He was taken into custody final week to start his jail sentence.
Beginning in 2016, Harris offered securities to boost funding funds for 2 schemes. As a substitute of utilizing investor funds for the needs Harris promised traders, Harris misappropriated the overwhelming majority offunds, utilizing them for his private use and to pay different traders. Such exercise is the hallmark of a “Ponzi scheme”- a fraudulent scheme the place cash taken from later traders is paid to earlier traders to create the false look that the scheme is producing returns.
In June 2018, the Securities Commissioner of Kansas was ordered to behave as a receiver for Harris and his firm, Harris Customized Initiatives LLC. The receivership has returned $500,000 in restitution again to traders.
“Ponzi schemes like this one too usually end in traders shedding half – if not all – of their authentic funding,” mentioned Schmidt. “On this case, traders who had been defrauded have obtained a big portion oftheir a refund, which is a testomony to the diligent work of our Securities Division and the Workplace ofthe Lawyer Normal.”
The Securities Division of the Kansas Division of Insurance coverage investigated the case, which was prosecuted by the Kansas Lawyer Normal’s Workplace.
Supply: Kansas Division of Insurance coverage
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