Con man admits to running Ponzi & $5 million monthly check kiting schemes
Fraud victimizes a South Carolina credit union and banks.
A South Carolina man who ran a Ponzi scheme and a $5 million a month check kiting fraud that victimized a credit union and banks will be sentenced in December.
Wade T. Caughman, 51, of Columbia pleaded guilty last month in U.S. District Court to operating a con operation to bilk investors and financial institutions, including the $829 million Palmetto Citizens Federal Credit Union and six other banks.
In exchange for his guilty plea, federal prosecutors agreed to drop six felony counts of bank fraud and money laundering, according to court documents.
The con man solicited investors by telling them he had lucrative auto sales leads from local credit unions. He also told investors that if they provided financing to buy the cars, they would make $800 in interest for every car sold to credit union members, federal prosecutors said in court documents.
continue reading »
