Second Quadwealth Founder Pleads Guilty in Multi-Million-Dollar Investment Fraud Scheme
|U.S. Attorney’s Office October 20, 2011|
PLANO, TX—A 32-year-old Frisco, Texas man has pleaded guilty for his role in a multi-million-dollar real estate fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jeremy Louder pleaded guilty to an information charging him with conspiring to defraud investors in a real estate fraud scheme that is alleged to have involved over $17 million and 82 investors throughout the United States. Louder entered his plea today before U.S. Magistrate Judge Don D. Bush.
Louder is the second individual involved in Quadwealth to plead guilty in the fraudulent enterprise, joining Jeremy Brown, 41, who pleaded guilty last week. According to information presented in court, from 2006 through 2010, Louder and Brown controlled Quadwealth, a company that marketed itself as an exclusive financial planning and wealth management group in which membership provided access to significant investment opportunities and a team of investment advisors and other professionals. Quadwealth advertised extensively through its website and through promotions on radio stations throughout the Dallas/Fort Worth area, including on WBAP 820 a.m., KRLD 1080 a.m., and KBKY 680 a.m.. However, in order to induce individuals to invest with Quadwealth, Louder, Brown, and other individuals intentionally made numerous false representations and omissions of material fact to these individuals, causing millions of dollars in losses.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force.
President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Louder faces up to five years in federal prison at sentencing. A sentencing date has not been set.
This case is being investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Shamoil T. Shipchandler.