RICHMOND, Va. (WWBT) - A former University of Virginia football player was sentenced to 40 years in prison for a $10 million investment fraud scheme and a separate loan fraud scheme.
Merrill Robertson, 39, of Chesterfield started Cavalier Union Investments, LLC, and Black Bull Wealth Management, LLC with co-conspirator Sherman Carl Vaughn.
From 2008-2016 Robertson and Vaughn solicited individuals to invest money in private investment funds that they managed, as well as distinct investment opportunities that they proposed.
Robertson identified potential investors through various contacts, including contacts he developed playing football at Fork Union Military Academy, University of Virginia and in the National Football League, while Vaughn focused on developing investment opportunities.
Robertson led investors to believe he was an experienced investment advisor, that his company was qualified to serve as a custodian of retirement accounts, that investor money was deposited in individual tax-deferred retirement accounts and that investor money was secured by tangible cash-producing assets owned by his company.
As a result, Robertson and Vaughn fraudulently obtained more than $10 million from over 60 investors, spending much of the money on their own personal living expenses such as mortgage and car payments, tuitions, spa visits, restaurants, department stores and vacations.
By 2015, Robertson and Vaughn had spent most of the money they collected from investors. Robertson was then unable to raise new investor capital. So Robertson approached Cavalier investors and other friends and offered to help them get loans in exchange for a portion of the loan proceeds. Mr. Robertson and others then caused falsified loan applications to be submitted to various banks and credit unions on behalf of these individuals, which included false statements about the borrower’s personal financial status, the real purpose of the loan, and whether the loan was secured by collateral. In doing so, Robertson and others obtained nearly $250,000 through falsified loan applications to at least 5 financial institutions.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office; Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr. Assistant U.S. Attorneys Katherine Lee Martin, Stephen E Anthony, and Kenneth Simon prosecuted the case.
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