Houston-area resident pleads guilty in stock investment Ponzi scheme

HOUSTON - A 40-year-old Mont Belvieu man has admitted to wire fraud in connection with a Ponzi-style investment scheme, announced U.S. Attorney Nicholas J. Ganjei.

From January 2022 through August 2023, Carl Channing Spence operated "AEI Financial" from his residence. He solicited friends, acquaintances and colleagues by promising high returns through stock trading specializing in "meme stocks." Spence promised victims 10 to 12 percent returns by investing in popular stocks during a period of rapid stock market gains. Instead, he diverted funds for personal use and to make purported returns to earlier investors.

Once victims provided funds, Spence created fraudulent account statements that falsely showed investment growth and returns which he used to persuade victims to reinvest. In reality, he commingled investor funds into a single account and lost much of the money through unsuccessful trades.

The scheme resulted in numerous victims who received fraudulent account statements but never recovered their original investments or promised returns. Spence took in approximately $2.1 million from the known victims.

U.S. District Judge Lee H. Rosenthal will impose sentencing April 14. At that time, Spence faces up to 20 years in prison as well as a possible $250,000 maximum fine.

FBI conducted the investigation. Assistant U.S. Attorneys Thomas Carter and Brad Gray are prosecuting the case.