Houston-area resident sentenced to 10 years for stock investment Ponzi scheme

HOUSTON - A 41-year-old Mont Belvieu man has been ordered to federal prison for wire fraud in connection with a Ponzi-style investment scheme, announced Acting U.S. Attorney John G.E. Marck.

Carl Channing Spence pleaded guilty Jan. 30.

U.S. District Judge Lee H. Rosenthal has now ordered Spence to serve 120 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard from three of Spence's 19 known victims who detailed the devastating effects Spence's scheme had on their lives and financial futures. In handing down the sentence, the court noted the unusually predatory nature of Spence's actions and that he seemed to specifically target friends, colleagues and community members who he knew to be particularly vulnerable to his scheme.

From January 2022 through August 2023, 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.

FBI conducted the investigation with assistance from Mont Belvieu Police Department. Assistant U.S. Attorneys Thomas Carter and Brad Gray prosecuted the case.