Feds haul man accused in ‘Ponzi-style’ scheme from Australia to Charlotte
A 59-year-old man extradited from Australia to Charlotte is charged with money laundering and fraud related to a $2 million investment scheme.
Gustavo Guzman, originally from California, made his first appearance in court on Monday, according to a release by the U.S. Attorney’s Office.
Guzman was indicted on allegations he defrauded 10 investors of $2 million by claiming he would invest their money, the release said. Instead of investing the funds, Guzman used it to fund his “personal lifestyle.”
He would make large credit card payments and cash withdrawals, and he would pay for personal expenditures, according to information contained in his indictment.
“Guzman suffered massive trading losses with the money that he did invest and used some of the victim’s money to make Ponzi-style payments to investors,” according to the indictment.
To conceal these losses, Guzman lied to his investors about their investments and gave them fake documents, including IRS forms and account statements, the indictment alleges.
Guzman is in federal custody facing charges of wire fraud and securities fraud, both carrying up to 20 years in prison and over $5 million in fines, according to the U.S. Attorney’s office. He is also charged with transactional money laundering, which has a penalty of up to 10 years in prison and $250,000 in fines.
The FBI in Charlotte took the lead on the investigation, with help from other North Carolina and Australian authorities.
It’s unclear Guzman’s exact tie to North Carolina or the Charlotte area. In some instances, prosecutors seek indictments in the jurisdiction of a victim or victims.
