A federal judge imposed a $1 million fine on an Iron Station man last month for his role in a Ponzi scheme, the U.S. Commodity Futures Trading Commission announced Friday.
Carl David Wright, a former Lincoln County school teacher, was sentenced in October to four years in prison.
This $1 million penalty, which Wright will be forced to pay to the commission, is separate from the $817,975 Wright has to pay to his victim investors in restitution. The amount of the fine was based on Wright defrauding his investors of at least $1 million.
Wright told his customers that their money would be invested in hedge funds, commodities and Quick Trip service stores. Instead, he used it to pay supposed returns to other victim investors, while skimming some off the top, prosecutors said during his trial.
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The scheme lasted from 2008-2013. When the scheme collapsed, prosecutors said, Wright had less than $1,000. Wright pleaded guilty in July 2013 to one count of mail fraud.