RI Ex-Broker Gets 8 Years In Ponzi Scheme

120
SHARE
RI Ex-Broker Gets 8 Years In Ponzi Scheme

A Rhode Island man, Thomas Huling, formerly of West Warwick, has been handed an eight-year prison sentence for orchestrating a sophisticated Ponzi scheme that spanned over a decade, defrauding investors and evading taxes, according to court documents.

Enter Email to View Articles

Loading...

RI Ex-Broker Gets 8 Years In Ponzi Scheme : Decade-Long Deception

Between 2008 and 2018, Huling operated a fraudulent scheme enticing investors with promises of lucrative investment opportunities, as revealed by the U.S. Attorney’s Office for the District of Rhode Island. The projects he promoted included high-yield bond trading platforms, a purported car emissions reduction technology, and an online advertising and marketing company.

Lavish Lifestyle Funded by Fraud

Prosecutors disclosed that even after being indicted, Huling continued his fraudulent activities, violating court orders by securing funds from a new investor and borrowing money from his roommate to purchase a Mercedes. His extravagant lifestyle, financed by diverted investor funds, encompassed luxury vehicles, memberships to multiple country clubs, high-stakes gambling, designer clothing, lavish vacations, and home improvements.

Elaborate Financial Maneuvers

To conceal his illicit gains, Huling employed a web of shell companies, maintained over 50 bank accounts, and executed complex financial transactions between accounts. When investors inquired about their investments, he placated them with false assurances or dodged their calls. Huling also utilized funds from new investors to repay early investors, perpetuating the Ponzi scheme.

RI Ex-Broker Gets 8 Years In Ponzi Scheme : Tax Evasion and Fraudulent Filings

Huling evaded income taxes for nearly a decade, reporting no taxable income between 2009 and April 2018. He falsified individual and corporate tax returns, utilized nominee bank accounts, paid personal expenses in cash, and fabricated company records, all to conceal his true income from the IRS.

Sentencing and Restitution

In addition to the eight-year prison term, U.S. District Judge Mary McElroy ordered Huling to serve three years of supervised release and to pay restitution to the United States and victims of the fraud, with the exact amount to be determined later.

RI Ex-Broker Gets 8 Years In Ponzi Scheme : No Comment from Defendant

Representatives for Huling did not respond to requests for comment, while the U.S. Department of Justice refrained from further statements beyond the sentencing memo.

Legal Representation

Huling is represented by Kevin J. Fitzgerald and Rebecca L. Aitchison from the Rhode Island Federal Public Defender Office. The government’s case is led by Sandra R. Hebert of the U.S. Attorney’s Office for the District of Rhode Island and John N. Kane from the U.S. Department of Justice, Tax Division.