Arvin Lee Black Pleads Guilty in Ponzi Scheme
Arvin Lee Black has pleaded guilty to two federal charges as part of a plea deal for his participation in a Ponzi scheme that took in about $21 million from over 50 victims.
Arvin Lee Black II, 34 years-old, is to be sentenced on May 9 before U.S. District Judge Robert Shelby. Black is facing possible imprisonment of up to 20 years for wire fraud charge and up to 10 years for money laundering charges, with an additional fines of up to $250,000 for each count.
Black originally operated a stock day trading company named Sole Group LLC. Black then solicited funds from potential investors by promising returns as high as 5 percent a month with the assurance that there was little risks involved.
Black however resorted to using the money from new investors to pay off earlier ones in an apparent Ponzi scheme. He returned about $7 million to investors, claiming they were from legitimate returns. He also used part of the funds for personal expenses, including direct transfer of money from the investor’s account to his.
Black also had business dealings with two businessmen from St. George, according to court documents. A receiver of I Works, the company operated by Jeremy Johnson, another St. George businessman, claimed that the two businessmen aided Johnson in hiding money that came from their online poker business which was eventually shutdown by bank officials. Johnson and others are currently being sued by federal regulators for deceiving their customers.
Black was found to have lost about $8 million in trading funds from companies related to the two businessmen, according to the records of the case.
Black’s plea agreement suggested the imposition of 5 years and 3 months sentence with a further stipulation that Black would be held be liable for restitution to investors for the amount of $13.7 million.
The Peiffer Rosca securities attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud, or stockbroker misconduct. They are currently investigating the possibility of assisting investors with the recovery of their losses. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers at Peiffer Rosca, Jason Kane or Joe Peiffer, for a free, no obligation evaluation of their recovery options, at (585) 310-5140.