COLUMBUS, Ohio — Two Texas men have been charged in a $50 million Ponzi scheme involving off-the-road tires, according to the United States Attorney for the Southern District of Ohio, Kenneth L. Parker.
John K. Eckerd Jr., 58, of Dallas, and Afif Baltagi, 45, of Houston, have been charged with wire fraud, money laundering, and tax fraud.
The indictment, unsealed yesterday, alleges that Eckerd, the leader of the conspiracy, conspired with previously convicted defendant Jason E. Adkins, 43, of Jackson, Ohio, and others to defraud over 50 investors.
According to the indictment, the conspirators promised a 15 to 20 percent return on investment within 180 days (about 6 months), using private planes and elaborate fraudulent paperwork to appear wealthy and successful. However, it is alleged that the defendants rarely bought or sold tires and laundered the proceeds of their fraud.
The charges carry potential maximum penalties of 20 years in prison for wire fraud and money laundering and five years in prison for tax fraud. Another defendant, Todd Wilkin, 60, of Hillsboro, Ohio, has already pleaded guilty to participating in the fraud scheme and awaits sentencing.