San Antonio father, son accused of fraud in connection with $800K Ponzi scheme

San Antonio father, son accused of fraud in connection with $800K Ponzi scheme

A father and son from San Antonio were both charged in connection with an alleged Ponzi scheme that defrauded investors of over $800,000, according to a news release from the Department of Justice.

A father and son from San Antonio were both charged in connection with an alleged Ponzi scheme that defrauded investors of over $800,000, according to a news release from the Department of Justice.

Elise Amendola /Associated Press

A father and son from San Antonio were both charged in connection with an alleged Ponzi scheme that defrauded investors of over $800,000, according to a news release from the Department of Justice.

Earl Roberts Sr., 76, and Larry Roberts, 50, were indicted by a federal grand jury on charges of conspiracy to commit wire and mail fraud, two counts of wire fraud and two counts of mail fraud.

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Court documents allege that Earl Roberts was the president and owner of the FACTAC Inc., a company that factors invoices and receivables from other companies, while Larry Roberts was the chief operating officer of the company.

Their company would purchase invoices and accounts receivable from other companies at a discount and then make a profit when the invoices and receivables were paid at full value at a later time, the Justice Department said.

According to the DOJ, the company ceased operations in December 2016 but continued to solicit investor funds until February 2018.

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The investors were told that their money would only be used to factor receivables but the defendants, however, were using the $800,000 to pay withdrawls and interest payments to previous investors, the court documents said. They would also transfer part of the investor funds to other companies under their control and use the funds to pay for their own personal expenses, according to the court documents.

Both men were arrested Tuesday and have both been released on bond.

When asked for comment, the elder Roberts told the Express News “I’ve been instructed not to talk about it to anybody. I hope it loosens up where I can comment, but right now I don’t want to break any rules and get in more trouble.”

Their arraignment is scheduled for next week before the U.S. Magistrate Judge Henry J. Bemporad in San Antonio.

If convicted, each charge could result in up to 20 years in federal prison.

Taylor Pettaway is a breaking news and general assignment reporter for MySA.com | @TaylorPettaway