Cherokee Ledger-Information, The (GA)
A Canton man has been indicted in a $40 million monetary fraud scheme, U.S. Legal professional Byung J. “BJay” Pak mentioned final Wednesday.
In line with an announcement from Pak:
James Torchia, 61, of Canton is accused within the indictment of operating a fraud scheme that brought about buyers to spend greater than $40 million on his firm’s promissory notes. He was arraigned in U.S. District Courtroom on Wednesday morning.
“Torchia is alleged to have stolen buyers’ hard-earned cash by mendacity to them concerning the safety of their investments and the way he would use their cash,” Pak mentioned. “It will be important that buyers completely examine who they’re investing with earlier than committing any of their hard-earned financial savings.”
“The hurt that may be brought on by greed and the false promise of secure investments will be devastating,” mentioned Particular Agent in Cost Chris Hacker of the FBI Atlanta subject workplace. “By disrupting this alleged scheme, the FBI has demonstrated our dedication to aggressively pursue these engaged in acts of economic fraud.”
Pak introduced on the arraignment that:
Torchia was the CEO of an organization named Credit score Nation, which bought life insurance coverage insurance policies and subprime auto loans and “provided buyers the chance to buy promissory notes for these insurance policies and loans.”
Torchia solicited investments in Credit score Nation that provided a 9-percent return and had been reportedly “backed by onerous asset greenback for greenback.” Pak mentioned Torchia knew the notes weren’t backed by onerous belongings, and that Credit score Nation had been shedding cash. “Torchia additionally allegedly lied to buyers about how their funds can be used and diverted buyers’ funds for undisclosed functions,” Pak mentioned.
The indictment additionally alleges Torchia continued to push investments in Credit score Nation, even after his accountant reported to him that the corporate didn’t manage to pay for to cowl present promissory notes.
The Securities and Change Fee filed a federal civil grievance in 2015 alleging Credit score Nation buyers had been defrauded out of tens of millions of dollars.
Assistant U.S. Attorneys Thomas J. Krepp and Leanne M. Marek are prosecuting the case.