The founder, president and CEO of Triton Financial LLC, Kurt Barton, faces a life sentence in prison after a federal jury convicted him of carrying out a Ponzi scheme that victimized more than 300 individuals that resulted in investor losses of over $50 million.
According to evidence presented at the trial, Barton devised a scheme between December 2005 and December 2009 to obtain money from investors under false pretenses. Barton represented to investors, including members of the defendant's family, members of the Church of Jesus Christ of Latter Day Saints, business leaders and professional football players that the Austin, Texas-based firm was purchasing properties, businesses and other assets with their funds.
However, the defendant was really using their money to satisfy the needs of other ventures to pay quarterly dividends or redemptions to prior investors, testimony showed.
Court testimonies also revealed that Barton used prominent former National Football League players and Heisman Trophy winners to solicit and encourage additional investors to participate in this scheme. To cover up this fraudulent scheme, Barton showed fabricated versions of his E*Trade monthly account statements to financial institutions, commercial lenders and potential investors.
“It is regrettable that selfish, greedy individuals devise schemes to make themselves rich by victimizing honest and innocent people, often depriving the victims of their life savings,” said John Murphy, a U.S. attorney.
Barton was convicted of conspiracy to commit wire fraud, making false statements to secure loans from financial institutions, and money laundering. There were also counts of securities fraud, 15 counts of wire fraud, five counts of making a false statement related to the acquisition of loans, and 17 counts of money laundering.
The former head of the financial firm is scheduled for sentencing on Nov. 4.
