CHARLOTTE, N.C. — A man convicted in an investment scheme that cost investors hundreds of thousands of dollars will spend over three years in prison.
Frank Mercado, 27, was sentenced to 41 months in federal prison for wire fraud charges in a Ponzi-style scheme that lasted from July 2019 to December 2022.
Mercado defrauded over 100 people out of more than $700,000 through his fraudulent hedge fund named Tiger-Wolf Capital, according to court documents. He told investors that their money would be used for options trading and similar investments.
Instead, Mercado made Ponzi-style payments to investors and funded his own personal purchases with the investors' money.
Many of Mercado's victims included his friends, co-workers, and other social acquaintances.
Mercado told his investors that they suffered trading losses and lied about the performance of their investments.
He pleaded guilty to wire fraud charges in June. He was ordered to pay over $709,000 in restitution.