ATLANTA — Charles Michael Vaughn was sentenced to eight years and four months in prison in connection with a $10 million Ponzi scheme he organized.
The sentence came after years of massive theft from Georgia senior citizens, who saw their retirement savings wiped out.
“I lost my home” because of him, indicated one of his victims. He is a “cunning criminal,” the victim stated. Vaughn entered a guilty plea in Georgia federal court and admitted to his fraud.
Vaughn, an Atlanta resident, claimed to run a hedge fund under the name of “CM Vaughn Emerging Ventures Fund,” according to court records. Starting in 2004, Vaughn raised funds from investors in Georgia and elsewhere, promising safe returns of as much as 50 percent annually. In fact, the federal records show, Vaughn stole the investors’ money and used it to finance his lavish lifestyle.
Vaughn’s scheme collapsed when he became unable to honor the investors’ redemption requests. His investors were dismayed to discover he squandered their money on his personal expenses.
Brian D. Lamkin, Special Agent in Charge, FBI Atlanta Field Office, said, “While Mr. Vaughn will now be held accountable for his elaborate fraud scheme, the many victims harmed in this matter are forced to rebuild their lives as best they can.”
After serving his sentence, Vaughn will be subject to three years of supervised release.
Image source: official records, via Mugshots.com. Booking pictures are in the public domain.