Ponchatoula – A North Shore man has been arrested for allegedly creating a Ponzi scheme that cost at least 200 investors more than $11 million.
William Chaucer, Jr., of Ponchatoula, was arrested on twenty counts of felony theft and several other charges related to the scheme.
Investigators from the La. Attorney General’s Office say Chaucer, who runs several finance companies in the Hammond and Ponchatoula area, told investors their money would be invested to fund one of his load companies. The money actually went to support an extravagant lifestyle of Chaucer and his wife, Cheryl, that included Mardi Gras krewe memberships, plastic surgery, a beauty pageant, jewelry and photos, investigators alleged.
Tangipahoa Parish District Attorney Scott Perrilloux said the victims of the alleged Ponzi scheme were from New Orleans, Hammond, Pontchatoula and Baton Rouge.
Chaucer closed his business operations in September, arousing suspicion from investigators. In some cases victims invested all of their retirement savings, unaware that Chaucer was not registered as a financial planner.
Perrilloux said Chaucer operated his scheme in line with how other Ponzi schemes are carried out. He said investment dividends were being paid for a time.
"He never missed a payment," Perrilloux said.
Investigators say since then, none of the investors have received any funds from Chaucer or his companies. Several investors say Chaucer refused to give them their money back when they asked for it.
Chaucer’s companies included: Chaucer Financial Services; American Credit of Hammond; American Credit of Covington; and City Credit of Ponchatoula.
The AG's Office has not released the names of any of Chaucer's alleged victims.
