United States Attorney John E. Murphy announced the return of a federal grand jury indictment in Austin charging a former Austin businessman in connection with a Ponzi scheme which victimized more than 300 individuals and resulted in a total estimated loss to investors of $41 million.
The 39-count indictment, returned late yesterday afternoon, charges 43-year-old Kurt Branham Barton, founder, president, and CEO of Triton Financial, L.L.C., 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.
The indictment alleges that between December 2005 and December 2009, Barton devised a scheme to obtain money from investors under false pretenses. Barton allegedly represented to investors that Triton was purchasing properties, businesses, and other assets with their funds when, in fact, 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 prominent former National Football League players and Heisman Trophy winners to solicit and encourage additional investors. To conceal his scheme, Barton allegedly presented fabricated and fictitious versions of his E*Trade monthly account statement to financial institutions, commercial lenders, and potential investors.
Upon conviction of all charges, Barton faces up to life in federal prison as well as restitution.
This investigation was conducted by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Mark Lane is prosecuting this case on behalf of the Government.
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