A 42-year-old man admitted to running a Ponzi-like scheme and pleaded guilty to mail fraud Tuesday, U.S. Attorney for the Northern District of Texas Erin Nealy Cox announced.
Jose Anibal Linares, a Honduran citizen, lured investors into handing over "principal" that he later deposited in bank accounts before paying them "interest" from other investors' principal payments, according to plea papers.
Linares operated JC Loans Finance and Inversiones JC Dallas.
According to Cox, he admitted to falsely telling investors their funds were "insured by the FDIC" and promised monthly returns based on real estate investments.
Instead, Linares spent substantial amounts on personal expenditures and wired money back to family in Honduras.
He faces up to 20 years in federal prison, Cox said.
