(CelebrityAccess MediaWire) — Two men were indicted last week for allegedly committing a fraud scam based on investments for a concert promotions company that cost residents of Nash County, North Carolina, millions of dollars.
The Nash County Grand Jury handed down 100 indictments against Joe Jones of Rocky Mount, N.C., and 21 indictments against Charles Harrison of Charlotte.
The men are accused of scamming hundreds out of more than $8 million in investments in Charlotte-based concert promoter B.A.B. Productions.
The partners executed what authorities called a Ponzi scheme, a type of pyramid scheme in which money from new investors is used to pay off earlier investors until the scheme collapses, according to the Rocky Mount Telegram.
The Secretary of State’s office began investigating Jones in 2004 when they learned he was selling unregistered investments. He had lost his license to sell investments in January 2003.
A raid on Jones’ office last year turned up $1,500 worth of marijuana and cocaine. He was ordered to stop selling investments for the concert promotion company.
In august, Jones was sentenced to 30 months probation for the drug violations to go with a six- to eight-month suspended prison sentence.
A statement from the District Attorney’s Office in Nash County said it is unsure if the money will ever be recovered. A court date had not been set at press time. –by CelebrityAccess Staff Writers