ATLANTA, Ga. (CBS46) -- A former CEO has been indicted for running a $40 million fraud scheme on Wednesday morning.
Authorities say, the CEO of Credit Nation, James Torchia, 61, of Canton, was accused of causing his investors to spend over $40 million on his company’s promissory notes.
U.S. Attorney Byung J. “BJay” Pak said, “Torchia is alleged to have stolen investors’ hard-earned money by lying to them about the security of their investments and how he would use their money,” said U.S. Attorney Byung J. “BJay” Pak. “It is important that investors thoroughly investigate who they are investing with before committing any of their hard-earned savings.”
A Specials Agent in Charge, Chris Hacker, told CBS46, “The harm that can be caused by greed and the false promise of safe investments can be devastating. By disrupting this alleged scheme, the FBI has demonstrated our commitment to aggressively pursue those engaged in acts of financial fraud.”
According to the Department of Justice, the Credit Nation purchased life insurance policies and subprime automobile loans and offered investors the opportunity to purchase promissory notes for those policies and loans.
Torchia’s own forensic accountant reported to him that the company did not have sufficient assets to cover all outstanding promissory notes; but Torchia continued to provide false information about the security of the promissory notes and the use of investors’ funds.