Rhode Island Man Indicted for Defrauding Investors and Tax Evasion
A federal grand jury in Rhode Island indicted a Rhode Island man yesterday on multiple counts of wire fraud, money laundering, and tax evasion after allegedly running decade-long schemes to defraud investors and the United States Treasury, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Aaron Weisman for the District of Rhode Island.
According to the indictment, between 2008 and 2018, Thomas Huling of West Warwick, Rhode Island, 55, formerly a mortgage broker, orchestrated a scheme to defraud investors by promoting several investment projects, including offshore high-yielding bond trading platforms, a car emissions reduction technology, and an online advertising and marketing company. Huling allegedly solicited funds for these investments by representing, among other things, that the money would be used for the particular project, and that the investments would achieve substantial returns - with little or no risk - within a short period of time. The indictment alleges that to enhance his credibility and build trust, Huling incorporated religion and the possibility of charitable good works into his sales pitch, and would claim association with well-known individuals who in turn had an interest in his investments.
In truth, and contrary to the representations and promises he made to investors, the indictment alleges that Huling used investor monies to support his lifestyle that included purchases of high-end luxury vehicles, membership and golf fees at multiple country clubs, clothes and fashion, food and restaurants, vacations and travel, and improvements to his residence.
The indictment further alleges that when investors contacted him with concern about the status of their investment, Huling lulled them with false and fraudulent excuses and promises to string them along, and other times refused and avoided calls. To appease certain investors, Huling allegedly used money raised from new investors to pay off the earlier investors. To conceal the source and disposition of funds, the indictment alleges that Huling established multiple shell companies and more than 50 bank accounts to deposit, commingle, withdraw, and transfer funds.
In all, Huling’s fraud scheme against investors allegedly yielded approximately $14 million in funds raised from investors, causing a loss to investors of more than $6 million.
Read more: https://www.justice.gov/opa/pr/rhode-island-man-indicted-defrauding-investors-and-tax-evasion