Husband and wife charged in Ponzi scheme after allegedly taking over $6.4 million from investors

A husband and wife from Weston are facing the possibility of years in federal prison for their alleged involvement in a Ponzi scheme that siphoned off over $6.4 million from investors for four years.

David and Sherry Varrone each face one count of conspiracy to commit wire fraud. If convicted, he could receive a maximum sentence of 30 years in prison while she faces a maximum of 5 years in prison, according to court records.

David Varrone was the CEO and registered agent of two companies based in Broward County, The Credit Engineers and Mindset Merchants. The Varrones sought out investors through social media, emails, calls, text messages and YouTube videos and offered them an agreement to lease their credit to The Credit Engineers in order to receive high-interest, unsecured loans that the company would invest in a hedge fund to earn returns, court records say.

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The Varrones and co-conspirators also promised they’d pay off any remaining loan balances at the end of the agreement. They claimed David Varrone was a billionaire who owned a restaurant business with a former NFL player, court records say.

In reality, they partly funded the scheme by fraudulently applying for and receiving a federal Economic Injury Disaster Loan, intended for relief to businesses during the COVID-19 pandemic.

Between January 2018 and April 2022, the Varrones and co-conspirators received at least $6.4 million from more than 40 investors and at least $650,000 from the fraudulent loan application, the court document says.

The millions they received were never invested but went instead to the Varrones and toward paying past victims, according to prosecutors.

David Varrone allegedly spent millions of investors’ dollars on a home mortgage, vehicles, vacations and a children’s college expenses, court records say.

Sherry Varrone allegedly participated in the scheme by helping with loan applications and transferring payments and funds to and from their bank accounts at her husband’s direction, according to the charging document.