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SALT LAKE CITY -- A Draper man accused of running a massive Ponzi scheme now faces a federal criminal charge.
Travis L. Wright, 47, the manager of Waterford Funding, allegedly took in $145 million from 175 investors, according to a complaint filed in July by the Securities and Exchange Commission. He was charged Thursday with mail fraud in U.S. District Court.
Wright told investors he would use their money to make loans secured by commercial real estate loans, but less than 10 percent was used for that purpose, the SEC complaint said. Instead, he allegedly spent the money on expensive homes, luxury cars and trips all around the world.
The alleged scheme fell apart in late 2008 when investors stopped receiving interest payments. Among the loans was one to Candwich Corp., a Sandy-based venture developing a sandwich-in-a-can product to be sold in vending machines. Court papers say Wright used over $15 million of investor money for his own use, such as buying a Holladay home from a former pro basketball player and sending friends and family on trips to Argentina, Egypt, Japan, Turkey and other countries. He also gave his wife up to $20,000 a month to spend, court documents say.
Many of Wright's possessions, including dozens of firearms and big-game trophies, were auctioned off last spring to help pay back investors.
The mail fraud charge stems from an interest payout he made in 2006, court papers say. Wright faces up to 20 years in prison and a $250,000 fine.
He did not immediately return a phone call Monday.
E-mail: pkoepp@desnews.com
