In a case investigated by the Federal Bureau of Investigation, a Mansfield, Texas man was sentenced by a U.S. District Judge to 48 months in federal prison. Jeffre Francis Halas was also ordered to pay monetary restitution in the amount of $523,622. He pled guilty to a single count of mail fraud that was connected to his investment fraud scheme.
Halas operated a company under the name of Halco Capital Management. He solicited potential investors under the guise of promising to combine their money in a “limited partnership”. Halas was to invest the money in stock and currency exchange markets; however, most of the initial investment was lost on the stock market quickly after joining. The investors continued providing funding to Halas because Halas reported false earnings on monthly letters, instead of reporting losses.
Two years after their initial investments, those that vested money in Halco Capital Management were notified by Halas that Halco Capital Management was insolvent. U.S. District Judge Terry R. Means ordered Halas to enter the Bureau of Prisons by July 16, 2012 for his involvement in fraud.