PENNSYLVANIA
Three people who were involved in a $54 million Ponzi Scheme that swindled more than 300 investors were named today in an indictment unsealed today, according to officials.
Officials charged Troy Wragg, 34, a former resident of Philadelphia, Pennsylvania; Amanda Knorr, 32, of Hellertown, Pennsylvania, and Wayde McKelvy, 52, of Colorado with conspiracy to commit wire fraud, conspiracy to commit securities fraud, securities fraud and seven counts of wire fraud, announced U.S. Attorney Zane David Memeger of Pennsylvania.
As the founders of the Mantria Corporation, Wragg and Knorr allegedly promised investors huge returns for investments in supposedly profitable business ventures in real estate and “green energy.”
According to the indictment, Mantria was a Ponzi scheme in which new investor money was used to pay “earnings” to prior investors since the businesses actually generated meager revenues and no profits.
To induce investors to invest funds, it is alleged that Wragg and Knorr repeatedly made false representations and material omissions about the economic state of their businesses.
“The scheme alleged in this indictment offered investors the best of both worlds – investing in sustainable and clean energy products while also making a profit,” said U.S. Attorney David Memeger. “Unfortunately for the investors, it was all a hoax and they lost precious savings. These defendants preyed on the emotions of their victims and sold them a scam. This office will continue to make every effort to deter criminals from engaging in these incredibly damaging financial crimes.”
Here are the allegations according to the indictment:
- Between 2005 and 2009, Wragg, Knorr and McKelvy, through Mantria, wanted to raise over $100 million from investors through Private Placement Memorandums or PPMs.
- In actuality, they raised $54.5 million. Wragg and Knorr were allegedly able to raise such a large sum of money through the efforts of McKelvy.
- McKelvy operated what he called “Speed of Wealth” clubs which advertised on television, radio and the internet, held seminars for prospective investors and promised to make them rich.
- McKelvy taught investors to liquidate all their assets such as mutual funds and 401k plans, to take out as many loans out as possible, such as home mortgages and credit card debt and invest all those funds in Mantria.
- During those seminars and other programs, Wragg, Knorr and McKelvy allegedly lied to prospective investors to dupe them into investing in Mantria and promised investment returns as high as 484 percent.
- It is further alleged that Wragg, Knorr and McKelvy spent a considerable amount of the investor money on projects to give investors the impression that they were operating wildly profitable businesses.
- Wragg, Knorr and McKelvy allegedly used the remainder of the funds raised for their own personal enrichment.
- Wragg, Knorr and McKelvy allegedly continued to defraud investors until November 2009 when the SEC initiated civil securities fraud proceedings against Mantria in Colorado, shut down the company, and obtained an injunction to prevent them from raising any new funds.
- A receiver was appointed by the court to liquidate what few assets Mantria owned.
- In order to lure prospective investors, it is alleged that Wragg, Knorr and McKelvy lied and omitted material facts to mislead investors as to the true financial status of Mantria, including grossly overstating the financial success of Mantria and promising excessive returns.
Defendants are presumed innocent until proven guilty.