Alabama business owner gets 15 years in $74K fraud scheme
HUNTSVILLE, Ala. (AP) — A Tennessee man was sentenced to 15 years in prison for fraudulently soliciting approximately $74,500 from five Alabama investors.
WAAY-TV reports 58-year-old Edwin Eugene Blalack was sentenced Thursday and ordered to return the $74,500 to investors. He pleaded guilty in May to securities fraud.
A press release from Alabama Securities Commission says Blalack incorporated The TriRox Group in Madison County from October 2014 through March 2015 and used it to misleadingly receive investment funds.
The release says Blalack falsely told investors he contributed $500,000 in start-up capital to the company and claimed TriRox was a viable investment.
It says Blalack used the investment funds on personal expenses, vacations and to repay other investors.
The release says the investors left their jobs for TriRox leaving them with financial and employment loss.
Information from: WAAY-TV, http://www.waaytv.com/