A 23-year-old Cartersville man, who began an investment fraud scam when he was a teenager, was sentenced to three years and five months in prison for defrauding investors of over $400,000.
According to Acting U.S. Attorney for the Northern District of Georgia Kurt Erskine, the charges, and other information presented in court:
Kevin Perry led investors to believe that his investment company, Lucrative Pips, was successfully earning substantial profits by investing in the foreign currency market. Perry induced investors to send money by signing agreements that claimed the investors’ initial investments were secure from loss.
“Perry’s fraud caused unsuspecting investors to lose their hard-earned money,” Erskine said. “During this pandemic, many have lost jobs and businesses while criminals continued to prey on unsuspecting citizens. Perry’s brazen actions, which included his continued scamming after a complaint was filed ordering him to cease, landed him in prison.”
Lucrative Pips was never registered as a commodity pool operator with the Commodity Futures Trading Commission. Instead of actually generating the returns he represented to investors, he used the money to enrich himself or to pay off other investors, with the goal of enticing others to invest with him.
“Perry carelessly continued his fraudulent investments even after a civil complaint was filed against him, thinking he was untouchable,” said Chris Hacker, Special Agent in Charge of FBI Atlanta.
Even after the CFTC filed a civil complaint against Perry, he continued to make fraudulent investment pitches to potential investors, which included falsely promising an undercover FBI agent that an investment of $10,000 would return a profit of $19,000 to $25,000 per month.
In addition to the prison sentence, Perry will serve three years of supervised release and pay $438,799 in restitution.