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In a shocking revelation of fraud and deceit, Franklin Ray, former owner of CSA Business Solutions LLC, has been sentenced to 17 years in prison after orchestrating a $40 million Ponzi scheme that duped hundreds of investors.
The U.S. Attorney for the Southern District of New York, Damian Williams, disclosed the details of Ray’s multifaceted fraudulent activities, including two COVID-19 loan fraud schemes and aggravated identity theft.
Ray’s deceitful journey began in June 2021 with the establishment of his truck investment scheme. He enticed investors to contribute funds towards his trucking and logistics company, promising them a share in the net income from trucks supposedly operating delivery services for major e-commerce and shipping companies. However, the reality was far from what was promised; CSA Business Solutions LLC barely operated any trucks and had minimal trucking revenues.
The scheme took a more sinister turn when Ray continued his fraudulent activities even after his arrest in March 2022, opening new bank accounts and accepting investor funds for non-existent trucks. His audacious actions led to the theft of approximately $2 million from unsuspecting victims during his pretrial release.
Additionally, Ray exploited the COVID-19 pandemic, obtaining over $1.9 million in Small Business Administration loan funds through forged paperwork. Another scheme involved a New York-based real estate company, where Ray falsified his personal business experience to secure a joint venture, resulting in $175,000 in startup costs being fraudulently obtained.
Ultimately, Ray’s empire of deceit collapsed, leading to a prison sentence, supervised release, forfeiture of over $42 million and several assets, including a classic 1968 Chevy Camaro. The court will also determine the restitution Ray must pay. His downfall serves as a stark reminder of the severe consequences of engaging in fraudulent conduct.
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