Morristown Man Sentenced For Operating Ponzi Scheme

GREENEVILLE Tenn. – On October 1, 2025, Michael D. Harris, 60, of Hamblen County, Tennessee, was sentenced to 33 months by the Honorable Clifton L. Corker, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Knoxville.  Following his release, Harris will be on supervised release for three years and will be required to repay over $1.5 million in restitution.

As part of the plea agreement filed with the court, Harris agreed to plead guilty to one count of wire fraud in violation of 18 U.S.C. § 1343.

According to filed court documents, from 2015 to 2020, Harris operated an investment scheme, commonly referred to as a Ponzi scheme, in the Morristown, TN area. He would convince victims of the offense to invest money with him based on his self-proclaimed expertise as a stock trader.  In exchange for giving Harris their money, victims either obtained guaranteed return promissory notes (usually calling for ten percent (10%) interest per month) that would frequently roll over into new notes or membership interests in purported investment group plans.  As part of the scheme, Harris agreed to pledge non-existent life insurance and, for those in his investment group plans, he would provide weekly market updates and phony plan share values.  In truth, Harris was spending money on himself, losing money in speculative investments, and using new investor’s money to repay previous investors. Harris ultimately confessed what he had done to a Tennessee Securities Division Fraud Investigator.

In total, Harris defrauded 52 victims and stole over $1.5 million.  He has been ordered to make full restitution to all victims as part of the sentence.

U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee and Special Agent in Charge Donald “Trey” Eakins, IRS Criminal Investigation (“IRS CI”) made the announcement.

The criminal indictment was the result of an investigation led by IRS CI with valuable assistance from the Morristown Police Department.

Assistant United States Attorney Mac D. Heavener III represented the United States.

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