Eventually, Xavier used new investor money to pay old investors in a Ponzi-like fashion before the scheme collapsed, it added.
The second scheme involved Xavier using Essex Holdings to obtain USD 1.2 million in payments and approximately $1.5 million worth of commercial real estate from the South Carolina Coordinating Council for Economic Development (SCCCED), a division of the South Carolina state government, that was supposed to be used to develop a dilapidated industrial property into a diaper plant and rice packaging facility.
According to the indictment, Xavier provided false financial documentation to SCCCED in order to obtain the contract, and later provided fake contractor invoices and fake bank statements in order to get paid under the contract.
As with the investment fraud scheme, Xavier spent the development money for his personal living expenses, and wired some of it to the same overseas accounts used in the investment fraud, federal prosecutors said.
He faces a maximum statutory sentence of twenty years in prison for each count and a fine up to $250,000.
Sourced from PTI, Feature image courtesy: profit.ndtv.com
