Former Ellicott City Man Sentenced in $17 Million Ponzi Scheme

A former Ellicott City resident was sentenced Tuesday to 15 years in prison after bilking investors out of more than $17 million which he used to buy- among other things- a Bentley, Lamborghini and Rolls Royce.

According to the U.S. Attorney's Office, Byron Keith Brown, 34, ran a Ponzi scheme from 2003 – 2009. On his website he used to lure investors, Brown claimed he had 10 years of experience in financial services and securities industries with offices in New York, Washington, D.C., Wilmington, Del., and London.

According to the U.S. Attorney, Brown had filed bankruptcy in 1999 and used a rented mailbox or virtual office service to conduct business for his companies, In God We Trust Financial Services, IGT Investment Company, IGT Wealth Management Group and WM Private Equity Fund. He was not a registered broker, dealer or investment advisor in Maryland, Virginia or Washington, D.C.

"Byron Brown used the Internet to make it appear as if he were running an investment management business for wealthy investors," U.S. Attorney Rod. J. Rosenstein said in a statement, "When in fact he was stealing millions of dollars from investors and using it to buy a fleet of luxury cars."

Brown, of Vienna, Va., was ordered to pay $9.8 million in restitution, and the government is also seizing his assets, including his fleet of luxury cars. So far authorities have recovered a 2004 Bentley; a 2005 Rolls Royce Phantom; a 1936 Auburn Speedster; a 2007 BMW; a 1997 Jaguar; a 2006 Aston Martin; a 2007 Lamborghini; a 2008 Maserati; a 2002 Ferrari; and two Mercedes.

According to prosecutors, Brown's website indicated a minimum $1 million investment. He used software on his website that created the illusion for investors that they were logging into a banking system and viewing their account information. The numbers, however, were made up.

Investors also told the U.S. District Court that Brown opened bank accounts in their names, retaining power of attorney and managing the money. He used money from new investors to pay off old investors.

"Fraudulent investment schemes can result in a total loss of the investment," IRS Criminal Investigation Special Agent Rebecca Sparkman said in a statement.

"If it sounds too good to be true, it probably is."

Brown's prosecution was part of Operation Broken Trust, a federal law enforcement program that targets investment fraud schemes.