Ponchatoula man arrested in alleged Ponzi scheme
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Authorities today arrested a Ponchatoula man for allegedly running a Ponzi scheme that cost at least 200 investors more than $11 million.
Instead of investing the money as promised, William J. Chaucer, Jr. spent it on Mardi Gras and on plastic surgery and beauty pageants for his wife, among other things, the Louisiana Attorney General’s Office said in a news release.
Chaucer was booked with felony theft, unregistereddealer/salesman/investment advisor in the sale of securities, sales of unregistered securities and making material misrepresentations in the sale of a security, according to the release.
Chaucer was a principal of Chaucer Holding Company and several finance companies, including Chaucer Financial Services, American Credit of Hammond, American Credit of Covington and City Credit of Ponchatoula, authorities said.
Chaucer is accused of telling investors that the money would be used to finance one of his loan companies. Individual investments to Chaucer ranged from $10,000 to $417,000, according to the news release.
None of the investors have received any money from Chaucer or his companies since he closed his finance company operations in September 2009, the Attorney General’s Office said.
Chaucer is accused of spending the money on things such as $400,000 worth of Mardi Gras krewe memberships and krewe-related expenses and $5,500 in plastic surgery and $11,800 in cosmetic dental work for Cheryl Chaucer.
He also allegedly spent $5,558 for tickets to and ads for the Senior America, Inc., pageant contest, which his wife participated in.
Other expenditures included about $14,276 in miscellaneous photos, $20,906 in jewelry and thousands more dollars associated with Cheryl Chaucer’s beauty pageant events, the Attorney General’s Office said.
William Chaucer was booked into Tangipahoa Parish Prison, according to the news release.
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