Carl David Wright of Iron Station, North Carolina was sentenced Tuesday to four years imprisonment for operating a Ponzi scheme that defrauded investors out of $1 million. He will remain out on bond until he is ordered to report to federal prison. After serving his sentence, Wright will spend three years on supervised release and pay $817,975 in restitution to his victims.

The former middle school teacher operated his scheme by convincing people to invest in Commodity Investment Group out of Cherryville, North Carolina, conning people out of over $1 million from August 2008 to March 2013. Wright is believed to have lied to investors, promising unrealistic returns of up to 20 or 30 percent in a short time period. He also misrepresented to investors that the company would invest their cash in hedge funds, commodities, and Quick Trip convenience stores.

Wright, however, failed to invest the cash he received. Instead, he used the money to run a Ponzi scheme, using money from new investors to pay back earlier investors as well as using much of the money on personal expenses. According to court documents, a number of investors paid Wright by meeting him in a parking lot and giving him cashier’s checks. Wright was never registered as a commodity trader and pleaded guilty in June 2012. When his scheme collapsed in 2013, Wright had less than $1,000.

If you or someone you know has lost money as a result of an investment or Ponzi scheme, please contact Richard Frankowski at 888-741-7503 to discuss your potential legal remedies or complete the contact form.