WGMD: DE AG indicts 3 in pyramid scheme

• WGMD: DE AG indicts 3 in pyramid scheme

Three people have been indicted for running a fraud scheme that cost two Delawareans over $100,000. 41 year old Terrel Alexander of Wilmington and two New Jersey residents have each been indicted on 15 charges each by a Kent County Grand Jury. Each was a principal in Credit USA, which was operating as a pyramid scheme. The 3 also face charges in New Jersey.

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Attorney General Beau Biden announced that his office has secured indictments against three people on charges that the trio ran a fraud scheme that cost two Delawareans more than $100,000.

Terrel Alexander, age 41, of Wilmington, Nicole Alexander, age 41, of Mt. Laurel, NJ, and William Love, III, age 39, of Mt. Laurel, NJ were indicted by the Kent County Grand Jury on 15 charges apiece, including Racketeering, Conspiracy to Commit Racketeering, Securities Fraud, Theft, Sale of Unregistered Securities, and Acting as an Unregistered Broker/Agent.

“With today’s indictment we’re holding these defendants accountable for cheating Delawareans out of their money,” Biden stated. “We urge anyone who believes they have been the victim of investment fraud to contact our Investor Protection Unit at 302-577-8424.”

Each defendant was a principle of Credit USA Inc., a company purporting to offer credit repair products. The indictment charges that Credit USA was operated as a pyramid scheme designed to personally enrich the three defendants. In pyramid schemes, investors are recruited to pay previous investors with the promise that they will be repaid with interest by later investors. Those who start the scheme get most of the “profit”, and later investors are left with nothing when additional investors can’t be found. The indictment alleges that, in addition to selling memberships in the pyramid promotion, the defendants sold stock and other unregistered investments in Credit USA, defrauding two Delaware investors out of more than $100,000.00. If convicted on all counts each defendant faces a minimum of 2 years in prison and a maximum of 76 years in prison.

In a related action, New Jersey’s Attorney General also announced the filing today of a civil lawsuit against these same defendants concerning the unregistered sale of securities.

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