Former New Orleans Saints punter Russel Erxleben was indicted in the United States District Court Western District of Texas Austin Division for allegedly running a Ponzi scheme obtaining over $2 million.
The indictment alleges that beginning in 2005 and continuing through October 2009, Erxleben solicited money from individuals for the purpose of investing in an alleged post-World War I German Government Gold Bearer Bonds investment program and an investment pool for French artist Paul Gauguin. According to the indictment, Erxleben falsely advised his investors that the defaulted German Gold Bearer Bonds were an asset backed security and rated "AAA" by Standard & Poors giving the investors a 100% or greater annual return for up to 30 years.
Instead, prosecutors allege that Erxleben used the money for himself and his family, and to pay dividends to prior investors. Russel Erxleben has been charged with five counts of wire fraud, two counts of engaging in monetary transaction in criminally derived property, and one count of securities fraud.
If you are a victim of a Ponzi scheme, securities fraud, financial malpractice or broker theft by a FINRA registered broker, please call the securities attorneys of The Costello Law Group at (877) 418-0003 for a free consultation.