$40M Trucking Ponzi Scheme Ends in Jail Time

Big Rig, Big Fraud: A $40M Misadventure in Trucking
Michigan resident Franklin Ray just landed himself a 17-year stay behind bars. Here's the lowdown:

False Promises

Ray structured his scheme by duping investors into a trucking venture with promises of hefty returns.

• Promised investors returns from a trucking business with e-commerce deliveries.
• Collected $40 million, claiming investment in over 2,000 trucks.
• Paid earlier investors with funds from new ones, typical of Ponzi setups.
• Also pleaded guilty to fraudulent $1.9 million small business loan applications during the pandemic.
• Continued his scheme even after initial arrest, leading to further charges.

In the end, Ray had hundreds of investors fueling his fake truck empire.

Source: CDL Life