Freddie Marshall Carson Sentenced to 46 Months in Prison for Wire Fraud and Money Laundering
|U.S. Attorney’s Office January 08, 2013|
KNOXVILLE—On January 8, 2013, Freddie Marshall Carson, 45, formerly of Powell Tennessee, was sentenced to serve 46 months in prison by the Honorable Tomas A. Varlan, Chief U.S. District Judge, as a result of his conviction on August 1, 2012, of wire fraud and money laundering.
An investigation conducted by the Federal Bureau of Investigation (FBI) and the Internal Revenue Service (IRS) showed that from 2005 through 2011, Carson held himself out as a well to do business man, owner of Masterworks. He conducted his sham business out of a $2 million home he claimed to own but was merely renting. He perpetrated the scheme by ingratiating himself into religious communities and using the religious affiliations to lull members of the communities into investing or making loans to his company. Some victims were told they were investing in securities of Masterworks to be used in business activities. Neither Masterworks nor Carson were registered to sell securities. Other victims were presented an investment scheme under the guise of a short term loan with guaranteed high rates of returns. However, once the victims wired their money into the Masterworks account, the money was immediately diverted by Carson for his own personal use, such as a $55,000 new Infiniti SUV. The scheme spread over multiple states with multiple victims. The amount of loss totaled over $1 million.
Agencies involved in the investigation included FBI and IRS. The United States was represented by Assistant U.S. Attorneys Jennifer Kolman.