Man Sentenced For Ponzi Scheme
FAYETTEVILLE — A Benton County man has been sentenced to federal prison for an international Ponzi scheme that bilked investors out of millions of dollars, federal prosecutors said.
Norman Bates Hatchett of Rogers was sentenced to 108 months in federal prison after pleading guilty in federal court in Fayetteville to eight counts of wire fraud.
U.S. District Judge Jimm Hendren also fined Hatchett $150,000 and ordered him to pay more than $1.5 million in restitution.
Prosecutors said the scheme targeted victims all over the United States and as far away as Australia and involved more than $6.4 million.
Investors would wire money to Hatchett in Northwest Arkansas and Hatchett would, in turn, wire the money to Singapore and Australia under the guise they were being invested in currency trading, prosecutors said. The money was never invested. Instead, they were used by Hatchett in his Ponzi scheme.
A Ponzi scheme is generally a tactic in which early investors are paid quick returns using money from subsequent investors, rather than through true earnings on an investment.
Judges Orders Cash Seized
FAYETTEVILLE — A federal judge has authorized the seizure of more than $500,000 from a Bentonville information technology company.
U.S. Magistrate Judge Erin Setser signed an order of arrest Wednesday for $503,562 in U.S. currency as part of forfeiture proceeding against Sarasu IT Solutions, Ltd.
An affidavit filed with the forfeiture complaint said Sarasu told the government it was employing foreign workers in Bentonville. An investigation by Immigration and Customs Enforcement found the overwhelming majority were not located and working in Bentonville but had been hired out by Sarasu to various technology company clients across the country. Agents also found payments to Sarasu from those clients Sarasu had provided foreign workers.
Federal law requires employers of foreign workers to provide the federal Department of Labor with the geographic location of each employee’s work site and other information.
The cash is subject to forfeiture because it is traceable to a unlawful activity by Sarasu, according to the affidavit.
Persons who may have an interest in the money can file a statement of interest in U.S. District Court in Fayetteville.