A former college basketball player has been charged in federal court with orchestrating a $2.2 million fraud scheme, according to charging documents filed Thursday.
Kerr Kriisa, who played collegiate basketball at the Division I level, allegedly defrauded multiple investors through a fraudulent investment opportunity, according to the U.S. Department of Justice.
Background
Investigation into Kriisa's activities began after several investors reported significant losses and raised concerns about the legitimacy of the investment vehicle he promoted, according to court documents.
Kriisa allegedly marketed the scheme primarily through social media platforms, leveraging his athletic reputation to attract victims, prosecutors stated in the criminal complaint.
The alleged fraud operated for approximately 18 months before federal investigators executed a search warrant at Kriisa's residence earlier this year.
The Charges
Kriisa has been charged with one count of wire fraud and one count of money laundering, both felonies carrying potential sentences of up to 20 years in federal prison.
Federal prosecutors allege that Kriisa misrepresented how investor funds would be used, instead using the money for personal expenses including luxury vehicles and real estate purchases.
The U.S. Attorney's Office for the District of Columbia is handling the prosecution. An initial appearance is scheduled before a U.S. magistrate judge.
Key Takeaways
- Kriisa allegedly defrauded approximately 15 investors out of $2.2 million total
- Charges include one count of wire fraud and one count of money laundering
- Prosecutors allege Kriisa used his athletic reputation to attract victims through social media
- Alleged scheme operated for approximately 18 months before federal investigation began
- Kriisa allegedly spent victim funds on luxury purchases including vehicles and real estate
What's Next
Kriisa is expected to appear in federal court for an initial appearance and arraignment within the coming weeks. A preliminary hearing date has not yet been set.
Federal prosecutors indicated they are continuing to investigate and may pursue additional charges or identify additional victims as the case proceeds.