Three men, including one who lives and another who lived in Derby, are charged in federal court in crimes “resulting in a potential loss of tens of millions of dollars” for investors, the U.S. Attorney’s Office in Kansas said Tuesday.
The allegations of misused funds include an $871,140 condo in Las Vegas, $218,238 for a 2018 Mercedes, a $150,000 suite at Allegiant Stadium in Las Vegas, more than $220,000 for leasing an aircraft and a monthly share for an aircraft and more than $275,000 toward two homes in Derby.
Investors, court documents say, believed they were investing in a company, which since 2018 reportedly had revenues of roughly $100 million, to buy factored invoices, with the promise of a 10% annualized return on their investment. Factored invoices are money owed to a company that a third party company buys at a discount and then collects the full amount later on. The company that was originally owed the money gets cash quickly and the third party gets a chance to make a profit when the money owed is paid in full…