International Law

All Freight Logistics Ponzi Guilty Plea

The Department of Justice reports:

"The president and CEO of All Freight Logistics, Inc., pleaded guilty today to mail fraud and money laundering charges in connection with his Ponzi scheme to defraud investors of millions of dollars through the offering of exorbitant rates of return, U.S. Attorney Christopher J. Christie announced.

Glyn Richards, 44, of Haddon Heights, made his first appearance in federal court and pleaded guilty before U.S. District Judge Renée Marie Bumb to a two-count Information, charging mail fraud and money laundering.

As part of his plea, Richards has agreed to pay restitution, the amount of which will be determined by the court at sentencing. Judge Bumb released the defendant on a $350,000 secured bond pending sentencing, which is scheduled for Oct. 14.

Richards was first arrested on July 25, 2007, by investigators with the Camden County Prosecutor's Office on state charges. The case was adopted for further investigation and prosecution by the U.S. Attorney's Office."

And how did the scheme work?

"Richards admitted that the contract stated that All Freight Logistics was in the business of transporting military equipment for the U.S. Department of Defense.

Furthermore, the contract stated that the investment funds were to be utilized to pay "up-front costs and expenses to overseas agents and steamship lines" in connection with the transportation of equipment, Richards admitted.

Typically a contract provided for a 120-day investment of $25,000 into the company in exchange for a 44-percent return on the investment, which was paid out over the next four months, Richards admitted.

Richards admitted that as president of All Freight Logistics and individually, he executed contracts with investors.

Richards also admitted that All Freight Logistics never transported military equipment for the Department of Defense."

You can read the criminalGlyn Richards Information here

There is also a Glyn Richards Ponzi blog, which is worth reading. Although none of the victims in this $12 million fraud seem insightful on how they were tricked.

Full post as published by Misleading Advertising Law on June 24, 2008 (boomark / email).