A former Austin, Texas, businessman has been indicted by a federal grand jury in connection with a Ponzi scheme that victimized more than 300 individuals and resulted in a total estimated loss to investors of $41 million.
Kurt Branham Barton, founder, president and CEO of Triton Financial, has been charged with conspiracy to commit wire fraud, make false statements to secure loans from financial institutions and money laundering.
Barton is also charged with multiple substantive counts including one count 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.
Between December 2005 and December 2009, Barton allegedly devised a scheme to obtain money from investors under false pretenses. Barton supposedly told investors that his company was purchasing properties, businesses and other assets with their funds. However, he was using their money to satisfy the needs of other ventures and the need to pay quarterly dividends or redemptions to prior investors.
According to the indictment, Barton used former National Football League players and Heisman Trophy winners to solicit and encourage additional investors. To conceal his scheme, Barton allegedly presented fictitious versions of his E*Trade monthly account statement to financial institutions, commercial lenders and potential investors.
If Barton is convicted of all charges, he could be sentenced to life in prison as well as restitution.
