Addis Businessman Sentenced to 42 Months in Prison for Investment Fraud Scheme
United States Attorney Brandon J. Fremin announced today that U.S. District Judge John W. deGravelles sentenced WILLIAM TODD CUTRER, age 52, to 42 months in federal prison for fraudulently obtaining over $500,000 from victim investors in an investment fraud scheme. The Court ordered CUTRER to pay $502,035.09 in restitution to his victims. CUTRER will be required to serve a two-year term of supervised release upon his release from prison.
CUTRER owned and operated West Baton Rouge Credit, Inc. (“WBRC”), a Port Allen lending company that made high-interest loans to individual customers. CUTRER raised capital for WBRC by obtaining lines of credit from local banks and by personally soliciting investments from individual investors. CUTRER guaranteed to his victims that he would pay interest on their investments and that their funds could be redeemed at any time upon written notice. Instead of using the funds as promised, however, CUTRER wrote checks to himself and his family members, and made payments to prior investors who were due interest on their principal. When CUTRER failed to make the payments he owed to his victim investors, he sent them a letter falsely claiming that because of the August 2016 flood, he was having difficulty collecting payments on WBRC’s high-interest loans.
In October of 2017, CUTRER pled guilty to mail fraud. During his guilty plea hearing, the defendant admitted that from in or about January of 2014 through at least November of 2016, he executed a scheme to defraud victim investors by means of materially false and fraudulent pretenses, promises, and representations. As a result of his scheme, the defendant fraudulently obtained over $500,000 from victim investors.
U.S. Attorney Brandon J. Fremin stated, “Financial crimes and investment fraud remain a high priority for this office, especially when the defendant abuses a position of trust to defraud his victims. The people of this district need to have confidence that professionals, not criminals, are properly managing their hard-earned living. We are pleased to see CUTRER’s scheme ended and CUTRER brought to justice for his lengthy fraudulent scheme. Special thanks to the FBI and the Louisiana Office of Financial Institutions for their outstanding efforts in this case.”
FBI Special-Agent-in-Charge Eric J. Rommal stated, “The FBI is committed to investigating complex financial crimes, including businessmen who steal from legitimate investors who have placed their trust in them.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Federal Bureau of Investigation, and the Louisiana Office of Financial Institutions. It is being prosecuted by Assistant United States Attorney Ryan Rezaei.