NC man sentenced to nearly 2 decades in prison for Ponzi scheme

SUMMERFIELD, N.C. (WGHP) — A Summerfield man was sentenced to nearly two decades in prison on Friday for his involvement in a Ponzi scheme and tax fraud, according to the Department of Justice.

William Lamar Rhew, III, 39, pleaded guilty to:

• wire fraud
• money laundering
• securities fraud
• tax evasion
• failure to file tax returns

The charges were in connection with a $20 million Ponzi scheme.

He was sentenced to 235 months’ (19 years and seven months) imprisonment followed by three years of supervised release.

According to court records, from Nov. 2017 to Dec. 2023, Rhew defrauded at least 117 investors of at least $24 million.

He induced victims to invest with his company, Chadley Capital, LLC, which would allegedly buy accounts receivable at a discount, sell them for a profit and provide consistently high rates of return on investment.

Rhew touted the company’s increasing deal flow and underwriting standards and, in offering materials, claimed $300 million in transactions in 2023, consistent returns in excess of 20% per year and nearly 74% total growth over two years.

All of Rhew’s claims were false.

Instead of investing victims’ funds as promised, Rhew used their money to pay his personal expenses.

He bought a boat, a beach house and luxury cars, made payments on his personal credit cards and made “interest” and “withdrawal” payments to other victim-investors as part of the Ponzi scheme.

In addition, for tax years 2018 through 2022, Rhew willfully failed to report nearly $9 million in income to the Internal Revenue Service and evaded over $3 million in taxes.

According to court records, Rhew maintained a shell business, which was funded in part by Chadley Capital, LLC victim funds, to support his personal lifestyle.

Rhew claimed payments into the shell business as business expenses but lied to his accountant about the existence of any corresponding reportable income.

Rhew also falsely reported his personal spending from Chadley Capital, LLC as business expenses.

He also willfully failed to file Forms 1040, U.S. Individual Income Tax Return, for the tax years 2018, 2020, 2021 and 2022.