Two Lake Norman men, one who owns a lakefront mansion and the other who owns a lakefront home, pleaded guilty Thursday to wire-fraud conspiracy, admitting they stole at least $7.5 million from unsuspecting investors, federal prosecutors said.
Cornelius residents Marlin Hershey and Dana Bradley, both 53, coaxed dozens of victims to invest in unregistered securities, U.S. Attorney Dena King said.
The men were indicted in U.S. District Court in Charlotte last year for promoting securities through Huntersville-based Performance Holdings and other companies they and unnamed others controlled.
Hershey and Bradley reaped millions of dollars in undisclosed commissions from selling securities and never disclosed that to their investors, according to court documents. The typically 10% commissions violated federal securities laws, prosecutors said.
The men repaid loans and previous investors with money from new investors, court records show.
Hershey and Bradley also violated the law by never disclosing negative results to investors, according to the indictment.
Lake Norman waterfront homes
Hershey and his wife live in a $2.5-million, 6,465-square-foot waterfront mansion on Fisherman’s Rest Court, Mecklenburg County public records show.
Bradley and his wife own a $1.4-million, 4,651-square-foot waterfront home on Waterview Drive, according to public records.
Undisclosed investment troubles
Court records don’t name the victims of Hershey and Bradley’s scheme, which lasted from 2009 to 2021.
Hershey and Bradley also never told investors about their previous investment troubles.
The Securities and Exchange Commission charged Hershey in the 2000s with insider trading, according to court documents. In 2009, Bradley was sued by an investor who alleged “deceptive trade practices” in a real estate project, according to last year’s indictment.
$7.5 million forfeiture judgment sought
Hershey and Bradley are free on bond until they are sentenced at a later date, prosecutor said.
Wire fraud conspiracy carries up to 20 years in prison and a $250,000 fine.
Prosecutors said they’ll also seek a forfeiture judgment of at least $7.5 million against the men.
On Thursday, King thanked the North Carolina Secretary of State Securities Division and the FBI for leading the joint investigation.