Maryland man pleads guilty to 2 felony counts in $364M fraud

BALTIMORE (AP) — A Maryland man accused in a $364 million investment scheme that entrapped hundreds of victims across the country has pleaded guilty to wire fraud and conspiracy.

In a federal courthouse in Baltimore, Kevin Merrill pleaded guilty Thursday to two felony counts. Thirteen other counts he faced are expected to be dismissed at sentencing in September.

Merrill initially pleaded not guilty to defrauding investors hoping to profit from consumer debt portfolios. But prosecutors announced this week he’d be arraigned again, signaling a plea change.

Prosecutors say the 53-year-old man and co-conspirators enriched themselves with investors’ money. A judge had issued a restraining order barring Merrill from selling his sports cars, mansions, expensive watches and Louis Vuitton clothes.

A divestment team is working to sell his possessions to pay back defrauded investors.

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