Sports marketing

owner of alleged sports marketing agency facing federal charges under Ponzi scheme | USAO-MDTN

NASHVILLE –Katie Lynn Mancuso, 40, of Nashville, was charged today with bank fraud and wire fraud, which resulted from a fraud scheme in which she received more than $ 2.8 million from investors, announced Acting American lawyer Mary Jane Stewart for the Central District of Tennessee.

According to the indictment document, Mancuso owned and operated Gray Area Marketing in Nashville, which was allegedly a sports marketing agency representing various famous athletes. As part of the fraud scheme and from June 2017, Mancuso solicited funds from investors and falsely claimed that Gray Area was awarded contracts to provide marketing services to professional athletes. Mancuso overestimated Gray Area’s assets and debts and promised to repay investor funds within 90 days and with a rate of return typically between 15% and 25%. Mancuso also provided investors with bogus invoices that falsely reflected amounts owed to Gray Area by vendors such as Nike, Oakley and Under Armor for services rendered.

During the program, Mancuso generated fraudulent invoices and emails to make his business appear legitimate. She also forged a lawyer’s signature on a fraudulent attorney-client representation and forged another person’s signatures on an alleged contract.

Between June 2017 and February 2021, Mancuso solicited funds from at least 26 investors and received more than $ 2.8 million. Although she reimbursed some investors, using the funds of others, the total loss to investors amounted to over $ 1.1 million. Mancuso used the investment funds to pay for his living expenses and in hotels, bars and to get plastic surgery.

If convicted, Mancuso faces up to 20 years in prison for wire fraud and up to 30 years in prison for bank fraud.

This matter was investigated by the FBI. Assistant US Attorney Kathryn W. Booth is pursuing the case.

The charges are only charges. The accused is presumed innocent until proven guilty by a court.

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