Va. Gambler Pleads Guilty to $400K Fraud Scheme

LYNCHBURG, VA. (Associated Press) - A Lynchburg man has pleaded guilty to charges related to a Ponzi scheme that prosecutors say cost about 19 investors a total of more than $400,000.

U.S. Attorney Julia Dudley said 45-year-old Jeffery Thomas Tuggle pleaded guilty in federal court in Lynchburg Thursday to charges of tax fraud, wire fraud and failing to file a tax return.

Dudley says Tuggle devised the scheme between 2004 and 2006 to finance his gambling habit.

She says he told investors he was working with a group of lawyers to provide their clients immediate funds based on legal claims, and promised returns of 30 percent to 40 percent.

Tuggle faces a maximum sentence of 27 years in prison and a $775,000 fine.