The problem, from the beginning, is that Herman falsely represents investment opportunities and boasts high rates of returns. Oddly, Herman represents himself to the public as a former and very successful waste management business executive. The backdrop story serves as Herman’s segue into the investment scam. The reality, however, is that Herman is broke; evidenced by a notification to his home mortgage holder indicating that he has neither income, nor savings since May 2012.

According to the indictment, Herman advises his victims that he invests the proceeds in a “Rewards Program.” The program belongs to one of Herman’s sham companies and is allegedly in partnership with Republic Services, an Arizona waste management company in Arizona. Herman represents his two year retirement plan and expectation of a future $17 million payout.

Garbage In, Garbage Out

After Herman successfully represents the profitability and safety of the funds, the victim loans $200,000 to Herman’s company, Delta Direct. Immediately thereafter, Herman disburses the funds amongst his numerous business accounts. And then, he transfers the funds to his personal account. As part of the scheme, Herman has the audacity to use the victim’s funds to make monthly payments back to the victim, per the promissory note. After receiving the monthly payments, the victim loans more money to Herman over a period of time.