A Frisco man has pleaded guilty for his alleged participation in a Ponzi scheme involving more than $3 million. Thomas Lester Irby II entered his guilty plea on Thursday, December 16, 2010.
According to reports, the 41-year-old Frisco man pleaded guilty to felony charges of money laundering, theft and securities fraud in a Ponzi scheme that supposedly took more than $3 million from unsuspecting investors.
Investors were told that Mr. Irby, owner of Plano-based Titan Wealth Management, was going to invest their money in what he referred to as “European Mid-Term Notes.” They were under the impression that they would be receiving low-risk returns on their investments. In the end, they got nothing.
Commercial real estate broker Jeffrey Staubach, and son of legendary football great Roger Staubach, lost $600,000 by investing with Mr. Irby. Mr. Staubach indicated that he knew Mr. Irby for years and that he trusted him. He was planning on using the money to put his three children through school.
“I never thought for a minute he could be committing fraud,” said Mr. Staubach.
Karen Bowie of York, Maine, and John J. Kim of Sparks, Md., have also been indicted on charges involving the alleged investment scam.
The Securities and Exchange Commission has filed a lawsuit against Mr. Irby, as well.
Recovering Losses Caused by Investment Misconduct.