'Ponzi scheme': Former deputy sheriff in US pocketed over $10 million from investors

In the United States, former Dodge County Deputy Sheriff Craig Harbaugh has pled guilty to wire fraud "Ponzi scheme" while seeking loans and investments in his firearms company named Tactical Solutions Gear LLC. He recited law enforcement agencies in states from Alaska to Tennessee as clients. To back up his claims, he had the contracts and purchase orders. It is described as potentially "one of the largest individual embezzlements in Nebraska history". 

'Effectively a Ponzi scheme'

Harbaugh's ploy pocketed nearly $11 million from a bank and four investors. This week,  he admitted that the 12 agencies he named were not doing business with him. He confessed that it was an "effectively a Ponzi scheme”. After today’s conviction, @FBIOmaha Special Agent in Charge Eugene Kowel said, “Craig Harbaugh exploited his position as a sheriff’s deputy to take advantage of victims who invested their life savings with him. Today’s plea demonstrates that no one is above the law. The FBI and our law enforcement partners will continue to ensure those who commit fraud are brought to justice, even if they wear a badge”. 

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Wire fraud carries a possible sentence of up to 20 years in prison, up to a $250,000 fine, & up to 3 years of supervised release that could follow any term of imprisonment. Harbaugh’s sentencing is scheduled for May 10, 2021. According to the plea agreement, after his scheme was discovered, he told an employee of Great Western Bank, “I was irresponsible, immoral, criminal, and selfish”. He added, “I wish I could go back and take it all back but all I can do is try and ask for your forgiveness and move forward”.

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However, the prosecutors have agreed to dismiss 12 other charges and to not pursue Harbaugh for fraud, tax, and money laundering crimes that were uncovered during the discovery process. It is still not clear where the money went. According to the reports by The Washington Post, Nebraska Department of Justice Criminal Chief Michael Norris said that it will be ‘premature’ to disclose that information. 

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(Image Credits: Unsplash)