Joseph F. Wallace, 51, of Duncan, was convicted by a federal jury on July 17 following four days of trial in Spartanburg, South Carolina. Wallace was found guilty on nine counts of wire fraud and one count of credit card fraud.
According to evidence presented at trial, Wallace owned and operated YMA Financial, offering services such as credit repair, business planning, and establishment of business credit. Beginning in late 2022, Wallace faced financial difficulties due to overextending himself with other business ventures. This situation led him to misrepresent information to new clients and withhold material facts. He directed clients to obtain various credit cards for establishing business credit and instructed them to provide false information on applications. Clients complied because of his claimed expertise and community involvement.
Wallace then obtained large cash advances from both new and existing client credit cards—sometimes with permission but sometimes without it. He told clients he would pay off the balances within 30 days to boost their borrowing potential but failed to do so when bills came due. Instead, he often paid only the minimum or nothing at all while providing excuses for nonpayment. Victims later discovered that Wallace used the funds for other debts or unrelated purchases. In total, more than $971,051 was stolen from affected clients.
“Fraud is not a victimless crime,” said U.S. Attorney Bryan P. Stirling for the District of South Carolina, “It undermines trust, devastates families, and steals from hardworking people who have done nothing wrong. Our office is committed to aggressively investigating and prosecuting those who exploit others for financial gain. We will continue working with our law enforcement partners to hold offenders accountable and protect our communities from these serious crimes.”
Wallace faces up to 20 years in federal prison along with a fine up to $250,000 and restitution requirements upon sentencing by U.S District Judge Donald C. Coggins Jr., pending review of a pre-sentence report from the U.S Probation Office.
The case was investigated by the FBI Columbia Field Office; Assistant U.S. Attorneys Bill Watkins and Elle E. Klein are prosecuting it.
The U.S. Attorney’s Office for the District of South Carolina protects communities across the state through criminal prosecutions, civil litigation—including collections—and representation of the federal government via a team comprising 120 prosecutors and support professionals, according to the official website.