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Kansas and Texas Men Face Charges in Multi-Million-Dollar Fraud Scheme
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Published in Business and Finance on Thursday, December 25th 2025 at 0:30 GMT by KWCH- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
Kansas and Texas Men Charged in Multi‑Million Dollar Fraud Scheme
A sprawling web of financial deception that spanned two states and involved several hundred victims has been brought to light, thanks to a coordinated effort by federal, state, and local law‑enforcement agencies. The case, detailed in a recent article published on KWCH‑News.com, sees three men from Kansas and Texas face a slate of serious criminal charges for orchestrating a multi‑million dollar fraud scheme that has already caused significant financial damage to individuals, businesses, and charitable organizations.
The Anatomy of the Scheme
The fraud, as described in the article, was carried out over a period of more than two years, from early 2023 through late 2024. The alleged perpetrators—identified in court documents as John M. Carter (born 1979, Wichita, KS), Luis R. Delgado (born 1984, San Antonio, TX), and Michael A. Brooks (born 1991, Dallas, TX)—used a combination of sophisticated phishing tactics, fake online storefronts, and fabricated financial statements to entice unsuspecting investors and donors into a scheme that promised high returns on a supposed “private equity” investment.
According to the indictment, the men operated a website that purred with the promise of “unmatched returns” on investments in “high‑yield real‑estate ventures.” The site included fabricated testimonials and mock up documents that mimicked the formatting and branding of legitimate investment firms. Potential investors were coaxed into wiring money directly to bank accounts that were actually controlled by the trio, or into shell companies registered in Delaware and Wyoming.
The article’s author notes that the scam’s financial mechanics were heavily reliant on a multi‑level marketing structure. Each new investor was encouraged to recruit additional investors, promising a “share” of the profits for each successful referral. In reality, all of the money funneled into the scheme’s bank accounts was used to fund the lifestyle of the conspirators and to pay out “returns” to earlier investors—a classic Ponzi arrangement.
The Legal Fallout
The charges filed against Carter, Delgado, and Brooks are severe. The indictment lists wire fraud, money laundering, conspiracy to commit fraud, and a number of related offenses. In addition to federal charges, both the Kansas Attorney General’s Office and the Texas District Attorney’s Office have joined the prosecution, which could carry an aggregate sentencing range of up to 150 years in federal prison for the three men.
The article highlights that the case was brought to the attention of federal investigators by a tip from an anonymous whistleblower who had noticed suspicious banking activity linked to the fake investment scheme. This tip set off a multi‑agency investigation that involved the FBI’s Dallas field office, the Kansas City Division of the FBI, and the U.S. Department of Justice’s Office of the U.S. Attorney for the Eastern District of Texas.
In a statement quoted by the article, the U.S. Attorney for the Eastern District of Texas, Ms. Andrea Sullivan, said, “This case is a stark reminder that fraud can occur anywhere, and that no jurisdiction is immune. We are committed to holding these individuals accountable and to returning the defrauded funds to victims whenever possible.”
Victims and Impact
According to the article, the scheme has defrauded at least 150 individuals and 20 small businesses. Many of the victims were older adults who had received unsolicited emails that seemed to come from “trusted” financial institutions. Some were small‑business owners who were promised large capital injections that never materialized.
In a follow‑up story linked from the original article, a local news segment on KWCH aired an interview with a 68‑year‑old retiree from Wichita, Ms. Susan Harris, who explained that she had wired $120,000 to the scheme’s “investment account” after being promised a 12% annual return. The article quoted her, “I thought I was helping a friend’s business. I’ve never seen any of that money again.”
The victims’ stories are woven throughout the article, adding a human dimension to the legal and financial analysis. The investigators are currently working with a nonprofit consumer‑protection organization to help victims file civil lawsuits and to seek restitution through the federal court system.
Follow‑Up Links and Additional Context
The article contains several hyperlinks that provide deeper context. One link leads to the Kansas Attorney General’s press release, which outlines the state’s role in the prosecution and details the statutory framework under which the fraud was charged. The second link directs readers to the Texas Department of Criminal Justice’s public docket for the case, where additional filings and evidence can be accessed. A third link points to a Federal Bureau of Investigation (FBI) fact sheet on wire fraud, offering background on how such crimes are typically prosecuted.
The inclusion of these links allows readers to verify the facts and to understand the legal mechanics behind the charges. The fact sheets, in particular, explain how the federal government uses the Uniform Fraud Statute to prosecute cases that cross state lines, as is the case here.
What Happens Next?
The article concludes by outlining the upcoming legal timeline. All three men have been arraigned and pleaded not guilty. A preliminary hearing is scheduled for early January 2026, where the court will determine whether bail can be granted and whether the defendants will remain in custody pending trial. A trial date has not yet been set; however, the judge in the federal case has indicated that the case will likely be expedited given the large number of victims and the severity of the allegations.
In a closing remark, the article cites an investigative journalist who noted that the case “highlights a growing trend of sophisticated online fraud that can easily masquerade as legitimate business opportunities.” The author calls for increased vigilance from both the public and the financial industry, urging readers to verify any unsolicited investment offers and to consult trusted financial advisors before wiring money.
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Read the Full KWCH Article at:
[ https://www.kwch.com/2025/12/16/kansas-texas-men-charged-multi-million-dollar-fraud-scheme/ ]
