Owner and Operator of Mid South Retirement Services in Boyce Pleads Guilty to Wire Fraud Charge

ALEXANDRIA, La. - United States Attorney Brandon B. Brown announced that Jerry O. Pearson, 61, appeared in the Western District of Louisiana today and pleaded guilty to one count of wire fraud. United States District Judge Dee D. Drell presided over the hearing today in Alexandria.

The investigation of this case by agents with the Federal Bureau of Investigation revealed that from 2012 to 2021, Pearson was the owner/operator of Mid South Retirement Services LLC ("Mid South") located in Boyce, Louisiana. As owner/operator of Mid South, Pearson managed Self Directed Individual Retirement Accounts (SDIRA). A SDIRA is an IRA held by a custodian that allows investment in a wider range of assets than most conventional IRA custodians permit. Mid South served as the custodian of Self-Directed IRAs and managed approximately $40,000,000 in assets.

Pearson created a scheme to defraud clients wherein he would take funds that Mid South was holding as the custodian, and transfer them to other accounts he controlled, without the client's permission. In total, during the scheme, Pearson transferred $3,431,152.21 in client funds from the Mid South client funding bank account to other accounts he controlled. Pearson then used the funds for himself, as well as the benefit of his family and other companies that he controlled. In order to keep the scheme from being detected, Pearson would misrepresent to clients that he was investing the funds as they had directed, when, in fact, he was taking the money.

Pearson faces a sentence of up to 20 years in prison, 3 years of supervised release, and a fine of up to $250,000. The sentencing hearing for Pearson has been scheduled for December 3, 2024, at 1:30 p.m.

The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Seth D. Reeg. The Louisiana Office of Financial Institutions was also involved in the investigation.

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