Acting United States Attorney Alexander C. Van Hook announced that Jerry O. Pearson, aged 62 from Alexandria, Louisiana, has been sentenced to federal prison for wire fraud. Pearson will serve 63 months in prison followed by three years of supervised release and is required to pay restitution amounting to $3,431,152.21 to his victims.
Pearson was the owner and operator of Mid South Retirement Services, LLC in Boyce, Louisiana, from 2012 until 2021. He managed Self-Directed Individual Retirement Accounts (SDIRA), which allow a broader range of investment options compared to conventional IRAs. Mid South handled around $40 million in assets during its operation. Additionally, Pearson was involved with Gray-Walk Farms, LLC, an unrelated entity based in Alexandria.
The court found that Pearson devised a scheme to defraud clients by transferring funds held by Mid South without their consent into accounts he controlled. He used intermediary accounts at financial institutions within the Western District of Louisiana and elsewhere under various names including Mid South's own name. The money was then funneled into Gray-Walk Farm’s accounts or Pearson’s personal bank and investment accounts.
In total, Pearson transferred $3,431,152.21 from client funds to his own accounts and used these for personal gain as well as benefiting his family and other companies he managed. To conceal the fraud, he misled clients into believing their funds were being invested as directed when they were not.
Pearson pleaded guilty on August 16, 2024, to one count of wire fraud as charged in the Bill of Information.
“Unfortunately, there were over 70 victims who fell prey to Pearson’s schemes and lies in connection with this case and many are left without their life savings and retirement as a result of his selfish actions,” stated Acting U.S. Attorney Alexander C. Van Hook. “This defendant conned many people for years but his actions have finally caught up with him.”
Special Agent in Charge Lyonel Myrthil of FBI New Orleans commented: “Mr. Pearson abused the trust of his clients for the benefit of himself and his family."
The investigation was conducted by the Federal Bureau of Investigation with assistance from the Louisiana Office of Financial Institutions and prosecuted by Assistant United States Attorney Seth D. Reeg.
