Call Now For a Free Consultation:
(614) 502-6165

Former Utah Scoutmaster Sentenced to 10 Years in Prison for $145m Ponzi Scheme

Draper, Utah Ponzi Schemer Who Used Real Estate Loan Fund Waterford Funding Ordered to Repay $43.2 Million to Elderly Investors

Travis Wright, of Draper, Utah, received a 10-year federal prison sentence last Friday for defrauding more than 175 investors out of approximately $350 million. Wright admitted to the Ponzi scheme in May 2011. As part of Wright’s sentence, U.S. District Judge Clark Waddoups ordered the former Utah scoutmaster to repay $43.2 million in restitution.

According to court documents, Wright acted as the sole manager of Waterford Funding, a real estate loan fund, from September 1999 to March 2009.

Wright told investors the fund would render returns of 8 to 44 percent in as little as nine months. Investors, most of whom were elderly, forked over more than $100 million in the nine-and-a-half year period.

In a July 2010 Complaint, the SEC accused Wright of making various misrepresentations to investors in Waterford Funding, including statements that investor funds would be used exclusively to make loans secured by commercial real estate. The SEC also accused Wright of telling investors their promissory notes were secured by a trust.

An SEC investigation, however, revealed that the trust never existed, and that Wright was using investors’ funds to make loans and investments that had nothing to do with real estate, as well as for his personal purposes. (For more information about the SEC’s investment fraud case against Travis Wright, click here.)

U.S. District Court documents showed that Wright stole more than $15 million of investor money for his personal use. Along with lavish vacations, luxury items, and a $5 million home, Wright gave his wife $1.3 million in spending money. The investment scheme unraveled in 2008, when Wright stopped making "interest" payments to investors.

Wright’s Ponzi scheme was one of the largest Ponzi schemes perpetrated in Utah history. Wright officially pled guilty to one count of felony mail fraud. His charges with the SEC were settled in June 2011.

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

Share This Story
If you found the information provided by this article useful, consider sharing to your social media channels to help others in their search for reliable resources.
Consult with Our Legal Team
There is never a cost associated with a consultation

Columbus Office

614-224-6000
305 W. Nationwide Blvd
Columbus, OH 43215
Meyer Wilson
New Orleans Office

900 Camp Street 
Suite 337
New Orleans, LA 70130
Los Angeles Office

310-905-8688
2029 Century Park East,
Suite 400N
Los Angeles, CA 90067
Cleveland Office

216-600-1355
6140 Parkland Blvd.,
Suite 330
Mayfield Heights, OH 44124
Bloomfield Hills Office

248-817-8214
41000 Woodward Ave.,
Suite 350
Bloomfield Hills, MI 48304
Quick Links
Follow Us
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. Read More
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
Read More
chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram