Larry Michael Parrish of Walkersville, MD, decided to admit his guilt in running a Ponzi scheme that defrauded some 70 investors out of $9.2 million. The 49-year-old Parrish made a plea agreement with the US Attorney’s Office after being indicted in June of last year on multiple counts of wire fraud. In its own action against Parrish, the SEC termed the man a “habitual fraudster” and obtained a judgment against him for the sale of unregistered securities.
Spanning from 2005 to 2009, Parrish operated his bogus investment program through IV Capital, a firm registered on the Caribbean island of Nevis and holding a bank account in Bermuda. IV Capital was represented as a one-stop shop for making easy money on the markets, ostensibly engaging in the international trade of “stocks, bonds, futures, options, currencies, precious metals and other types of securities and debt instruments.” Parrish guaranteed investors 24-30% returns at very low risk, claiming that their funds would be held in escrow only in order to secure lines of credit for trading- a rather common ploy in forex-type Ponzi schemes. Just as well, IV Capital had supposedly been around since the late 1990s, with Parrish boasting of $20 million under management.
Unbeknownst to investors, IV Capital was little more than Parrish’s own Ponzi machine. His claims of wild success were a cover for the misappropriation of client funds; $5.2 million in their own principal would end up being paid out as fictitious interest. When Parrish did give a whirl to the high-risk trades that were his legendary expertise, he managed to flush away another $2.9 million of investor money. He then spent approximately another $1 million on his own heart’s desires, from clothes, electronics and furniture to lavish golf vacations and a 2009 Harley Davidson FXDF motorcycle. Life’s never complete until you’ve had the wind of freedom blowing through your hair while riding a hog!
Parrish is set to be sentenced on November 15th. Under the terms of the plea agreement, federal prosecutors will not seek a prison sentence greater than 11 years, while Parrish is not to request any time less than 5 ½ years.
LARRY MICHAEL PARRISH
- Age: 49
- Company: IV Capital
- Job: Trader
- Scam: Prime Bank, Forex
- Profits: 30% per year
- Ponzi Time: 2005-2009
- Number of Victims: 70
- Amount of Fraud: $9.2 Million
- Location: Walkersville, MD
- Indictment: Multiple Counts of Wire Fraud
- Court: US District Court, District of Maryland