WICHITA, Kan. (KSNW) — A Wichita businessman who pleaded guilty to securities fraud has been sentenced to prison.
Insurance Commissioner Vicki Schmidt said that Jesse W. Harris, 36, sold securities to raise investment funds for two schemes. Harris had a company called Harris Custom Projects LLC.
Schmidt says instead of using the investor funds for the promised reasons, Harris used the money for his personal use and to pay other investors.
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The insurance commissioner says that’s the hallmark of a Ponzi scheme, where money is taken from later investors to pay earlier investors to create the false appearance that the scheme is generating returns.
“Ponzi schemes like this one too often result in investors losing part – if not all – of their original investment,” Schmidt said in a news release. “In this case, investors who were defrauded have received a large portion of their money back, which is a testament to the diligent work of our Securities Division and the Office of the Attorney General.”