A Morristown man has been handed a prison sentence after running a Ponzi scheme that duped investors out of over $1.5 million. Michael D. Harris, 60, was sentenced to 33 months in prison followed by three years of supervised release, during which he is required to repay the stolen funds, the U.S. Attorney’s Office announced yesterday.
On October 1, Harris accepted a plea agreement, pleading guilty to one count of wire fraud as revealed in the U.S. Attorney’s Office. Harris, who touted himself as a stock trading expert, lured 52 victims between 2015 and 2020 with the promise of guaranteed high returns through promissory notes and membership interests in investment plans, that turned out to be non-existent.
Detailed in the U.S. Attorney’s Office, Harris pledged fake life insurance as security, and deceived investors by issuing fabricated weekly updates and market reports on their investments. Instead of legitimate trading, he used incoming funds to pay off earlier investors, a classic hallmark of financial waywardness that marks Ponzi schemes.
The sentence was handed down by United States District Judge Clifton L. Corker, after Harris's scheme was brought to light by a Tennessee Securities Division Fraud Investigator, and the indictment was the culmination of an investigation led by IRS Criminal Investigation with support, from the Morristown Police Department. U.S. Attorney Francis M. Hamilton III and Special Agent in Charge Donald "Trey" Eakins were the ones to make the U.S. Attorney’s Office announcement.
Assistant United States Attorney Mac D. Heavener III represented the government in this case. As part of his sentence, Harris is ordered to make full restitution to all victims. The swift actions by federal and local agencies underscore their ongoing commitment to protect citizens from financial fraud and bring perpetrators to justice, as per the U.S. Attorney’s Office,
