NORFOLK, Va. — A federal jury in Norfolk, Virginia found an Arizona man guilty on several counts of wire fraud and money laundering.
According to a press release from IRS Criminal Investigations, the jury convicted David Alcorn of Scottsdale and Aghee William Smith II of California on charges of conspiracy to commit wire and mail fraud as well as money laundering.
The pair were involved in a multi-year investment fraud scheme from 2011 to 2017.
According to the release, Alcorn and Smith, in addition to several other co-conspirators, defrauded around $20 million out of hundreds of unsuspecting investors, most of whom were at or near retirement age.
In addition to Alcorn and Smith, Kent Maerki and his wife Norma Jean Coffin from Arizona were involved in the operation, according to the press release.
The fraud scheme began in 2011 when Smith began selling fraudulent investments to Alcorn and others, the release read.
The conspirators in the case would use "material misrepresentations to sell illiquid, highly speculative investment vehicles," read the release.
Money taken from victims was used to pay for the conspirators' criminal enterprise and lavish lifestyles.
Unsuspecting investors cashed out their 401k and other retirement accounts to invest without knowing their money was immediately transferred into companies controlled by Alcorn, Smith, and Maerki, read the release.
The money transferred into their company accounts was marked as "fees," the release read.
The victims suffered losses totaling more than $20 million.
Alcorn was convicted of conspiracy, wire fraud, and money laundering. He faces a maximum sentence of 200 years in prison.
Smith was convicted of conspiracy and wire fraud. He faces a maximum penalty of over 90 years in prison.
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