Former UT football player Erxleben arrested (updated 2/12/13)

[TexasTowelie]

Last edited Tue Feb 12, 2013, 04:40 PM - Edit history (1)

Former University of Texas football player Russell Erxleben was arrested Thursday morning, according to a spokesman with the U.S. Attorney’s Office for the Western District of Texas.

In an indictment handed up Tuesday and unsealed Thursday, Erxleben is accused of running a ponzi scheme that generated more than $2 million, officials said. He was indicted on five counts of wire fraud, one count of securities fraud and two counts of money laundering.

<<<snip>>>

The indictment said Erxleben used several companies, including WALTEC Consultants, LRE Holdings and the MDM Group, to promote investments in fraudulent ventures, mainly in post-WWI German government gold bearer bonds and in work purportedly by Paul Gauguin, the famous late 19th-early 20th century artist.

Erxleben used investment proceeds for the benefit of himself and family and to pay shares to previous investors, the indictment said. He made various wire transfers using numerous financial accounts opened and maintained by others, including at least one family member, the records said.

More at http://www.statesman.com/news/news/crime-law/former-ut-football-player-erxleben-arrested/nT55j/ .

[font color=green]My apologies to El Supremo for the reporting the bad news.[/font]

Update:
Update 10:40 a.m.: Erxleben apparently waived this morning’s hearing, though immediate details were not available.

Earlier: Former football player Russell Erxleben is expected back in federal court in Austin on Tuesday morning for a formal arraignment and detention hearing on an alleged Ponzi scheme.

In late January Erxleben was charged with five counts of wire fraud, two counts of money laundering and one count of securities fraud for allegedly using three companies to promote fraudulent investments. He is accused of defrauding investors through a Ponzi scheme that paid out more than $2 million in nearly four years.

The hearing in U.S. Magistrate Judge Andrew Austin’s court is set to begin at 10 a.m.

http://www.statesman.com/news/news/local/former-football-player-erxleben-expected-in-court/nWMXf/

[NYC_SKP]

1. Serves him right for that last name spelling.

For fuck sake!

[Wellstone ruled]

2. Another Mormon Shyster.

[TexasTowelie]

3. 2:30 p.m. update:

Former University of Texas football player Russell Erxleben will remain incarcerated until his next appearance in court Tuesday, a judge ruled Thursday afternoon.

U.S. Magistrate Judge Mark Lane said the government had determined Erxleben was a risk of flight or a danger to others and should remain in custody until his arraignment and detention hearing next week.

Erxleben asked for a court-appointed lawyer.

[font color=orange]After all the money he has stolen, he wants a court-appointed lawyer?

I hope that he enjoys the cuisine.[/font]

[ashling]

4. Wasn't he in trouble some years back for

defrauding clients or something like that?

[TexasTowelie]

5. Yes he was.

From the link:

In 1999, Erxleben pleaded guilty to federal conspiracy and securities fraud charges stemming from a foreign currency trading scam in which hundreds of investors lost more than $30 million. After his release from federal prison in 2005, Erxleben drew the attention of federal and state authorities when he bought and sold bonds issued by the German government before World War II.

Old habits are hard to break.

[ashling]

6. He should have stuck to soccer

I think he must have had his football helmet at UT on a little too tight

[hobbit709]

7. Once a scam artist, always a scam artist.

Evidently he's a slow learner.

[TexasTowelie]

8. Update to story posted above. n/t