Alleged Fraudster Sentenced to 14 Years in Parallel Criminal Case
Litigation Release No. 24655 / October 31, 2019
Securities and Exchange Commission v. Kevin B. Merrill, et al., Civil Action No. 18-CV-2844-RDB (D. Md. filed Sept. 13, 2018)
United States v. Kevin B. Merrill, No. 18-CR-0465-RDB (D. Md. filed Sept. 13, 2018)
One of the alleged perpetrators of a Ponzi-like scheme that raised more than $345 million from over 230 investors across the United States, Jay B. Ledford, has been sentenced to 14 years in prison in a parallel criminal case. The court also ordered Ledford to repay the full amount of the victims' losses, with the amount to be determined on a later date.
The criminal charges against Ledford stem from the same misconduct alleged in the SEC's complaint, filed on September 13, 2018 in federal district court in Baltimore. From at least 2013 to 2018, Ledford and co-defendant Kevin B. Merrill allegedly attracted investors by making false statements about how investors' money would be used and propping up their misstatements by creating sham entities and fraudulent documents. Rather than use investor funds to acquire and service debt portfolios as promised, the amended complaint alleges that defendants used the money to make Ponzi-like payments to investors and to fund Merrill's and Ledford's extravagant lifestyles. Another co-defendant, Cameron R. Jezierski, entered a guilty plea in the parallel criminal case and is awaiting sentencing.
The SEC's continuing investigation is being conducted by Norman P. Ostrove, Dustin E. Ruta, and Scott A. Thompson of the SEC's Philadelphia Regional Office. The litigation is being led by Julia C. Green and Mark R. Sylvester and supervised by Jennifer Chun Barry. Kelly L. Gibson, Associate Regional Director, is supervising the action. The SEC appreciates the assistance of the U.S. Attorney's Office for the District of Maryland, the Baltimore field office of the Federal Bureau of Investigation, and the Federal Housing Finance Agency.