Man Gets 15 Years For Ponzi Scheme He Ran With 2 Grown Children

CHICAGO (CBS) — A Highland Park man has been sentenced to 15 years in prison in connection with a Ponzi scheme he ran with his son and daughter that bilked investors out of $10.7 million.

Roy Fluker Jr., 56, was arrested in Florida, where he had fled after he missed court for sentencing last December, prosecutors said. Back in Chicago, he was sentenced late Thursday by U.S. District Judge Gary Feinerman.

Fluker’s son, Roy Fluker III, 31, of Walled Lake, Mich., was sentenced to eight years in prison by Feinerman Aug. 16. Fluker’s daughter, Ronnanita Fluker, 34, of the Detroit suburb that is also called Highland Park, was also sentenced to eight years in December by trial Judge David Coar.

Between 2005 and 2008, the Flukers took about $18 million from victims, and some victims’ homes, when they persuaded the victims to invest in their “Spend and Redeem Program” at their companies, More Than Enough LLC and Locust International LLC.

The Flukers told participants they would receive 25 percent of their total investment every month for a full year, for a 200 percent profit. They also marketed a financial program called the “Housing Program,” in which they told homeowners they could reduce their mortgage payments and own their homes outright within five years, prosecutors said.

But the Flukers actually used the investments for themselves, and paid out Ponzi-type payments so as to maintain the false impression that the programs were possible and encourage victims to reinvest.

The Flukers targeted African-Americans exclusively for their scheme, and met most of their victims at Chicago area churches and hotels.

Millions of dollars obtained by fraud were paid back to investors, and losses totaled about $10 million when the scheme collapsed in 2006, prosecutors said. Banks began freezing accounts associated with the fraud, and the Illinois Attorney General’s office got about $3.4 million back for the victims.

But altogether, the victims are still out $7.3 million thanks to the Flukers’ scheme, prosecutors said.

In addition to the prison sentences, the Flukers were hit with $9 million preliminary forfeiture judgments and must pay $7,336,957 in restitution, prosecutors said.

  • Brandyman

    How do people pay back money when there is no way in heaven to do it, that is the most ridiculous thing I keep hearing. They need to tie them up and let the victims have their way with them till they are dead. See we are way to easy on people doing these type of crimes or any type, we have it way to easy for them. They even brag about it, We can do the time and have a great life after for what we did. We need to put them to work and make it so hard they pray every day they was dead. Then we will start to get a grip on the crime.

  • Gene S

    When these people are in jail they need to be put on a chain gang and clean Illinois highways up and then once out must work for the people that they swindle the money out of.

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