Millington Man Pleads Guilty to Ponzi Scheme
Memphis, TN - James Terry Brinley, 53 of Millington, pleaded guilty in federal court to one count of a three count Information filed today before Judge Samuel H. Mays announced Lawrence J. Laurenzi, United States Attorney for the Western District of Tennessee. Brinley was charged with wire fraud in violation of Title 18, USC, Section 1343. Violations of this statute carry a penalty of up to five years in federal prison.
According to the Information, from June 1999 to May 2009, Brinley operated a business called Strategic Capital Management based in Millington. Brinley devised a scheme to defraud and obtain money from various individuals representing to them that they were buying certificates of deposit and participating in trading accounts in which investors would earn returns based upon the Brinley’s trading of securities. The Information further states that part of the scheme involved telling investors that their investments were insured by FDIC or were guaranteed, statements that Brinley knew to be false. Brinley also falsely represented details of his trading performance and made promises of above market interest rates.
The Information notes that Brinley used the money to pay business overhead costs, personal living expenses, and to pay other investors returns on their investments. Brinley defrauded investors of approximately $3.5 million dollars during the course of the operation of this scheme.
Brinley is scheduled to be sentenced on June 11, 2010.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Tim Discenza is handling the case for the government.
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