WAFB Channel 9, Baton Rouge, LA |LA man arrested for alleged Ponzi scheme

LA man arrested for alleged Ponzi scheme

BATON ROUGE, LA (WAFB) - The Louisiana attorney general's office arrested a man Thursday morning for allegedly creating a Ponzi scheme that cost at least 200 investors over $11 million.

William J. Chaucer Jr. of Ponchatoula was charged with felony theft, unregistered dealer/salesman/investment advisor in the sale of security, sales of unregistered securities and making material misrepresentations in the sale of a security. He faces 20 counts of each charge.

Chaucer is the principal of Chaucer Holding Company, Chaucer Financial Services, American Credit of Hammond, American Credit of Covington and City Credit of Ponchatoula. According to investigators, Chaucer told individual investors their money would be invested to fund one of his loan companies, when in fact, most of their money was used to finance the extravagant lifestyle of he and his wife, Cheryl.

Investigators said the investors unwittingly paid for Mardi Gras krewe-related expenses, plastic surgery, cosmetic dental work, tickets to a pageant contest, jewelry and more. Below is a breakdown:

• Over $400,000 worth of Mardi Gras krewe memberships and krewe-related expenses for the Chaucers
• $5,500 in plastic surgery and $11,800 in cosmetic dental work for Cheryl Chaucer
• $5,558 for tickets to and ads for the Senior America, Inc. pageant contest in which Cheryl Chaucer was a participant
• $14,275.74 in miscellaneous photos
• $20,905.74 in jewelry
• Thousands more associated with Cheryl Chaucer’s participation in beauty pageant events

Chaucer closed his finance companies' business operations in September 2009. Since then, none of the investors have received any funds from Chaucer or his companies. The individual investments ranged from $10,000 to $417,000. Several investors reported requests to Chaucer to liquidate their bonds and have their money returned were rejected.

He was booked into Tangipahoa Parish Prison. Bond has not been set.

The Attorney General’s Office Special Prosecutions Unit and Louisiana Office of Financial Institutions conducted the investigation under the supervision of District Attorney Scott Perrilloux.

The Tangipahoa Parish Sheriff’s Office assisted with the arrest.

Cheryl Chaucer Video

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