MIDLAND, Texas — A Keller man who operated a business headquartered in Midland is now facing jail time and a big restitution payment.
Marco Perez Jr., also known as Sully Perez, 37, is the founder and director of Permian Basin Proppants, Inc.
The company claimed to sell proppants like sand for fracking operations. However, the US Attorney's Office says he used the business for a Ponzi scheme, "soliciting investor money based on misrepresentations."
Perez reportedly promised substantial returns on investments, and told the victims their money would go to purchasing frac sand at a discount and reselling for a profit.
However, Perez rarely completed the promised transactions and instead diverted the money to maintain his lifestyle and keep the scheme going.
Court documents show Perez actually used the funds to fund a lavish wedding and vacations as well as purchase property and multiple luxury vehicles like a Lamborghni and a Rolls-Royce.
Back in April, Perez pleaded guilty to one count of wire fraud and one count of engaging in monetary transactions in property derived from specified unlawful activities.
He has now been sentenced to 14 years in prison and has been ordered to pay $14,538,967.27.
“The FBI will continue to vigorously pursue scam artists, like the defendant, who convince others to entrust them with their hard-earned money, but instead use that money for personal gain,” said Special Agent in Charge Jeffrey R. Downey, FBI El Paso. “This sentence ensures that Mr. Perez Jr. is punished and sends the strong message that investment schemes don’t pay.”
