To carry out a complex and illegal scheme to lure investors, Columbia entrepreneur Wade Caughman wrote millions of dollars worth of checks on numerous Columbia area banks when he knew he didn’t have enough money in his accounts.
The bank accounts were part of what federal authorities now call Caughman’s “Ponzi scheme,” an illegal razzle-dazzle whereby he paid money to investors in a fake auto-sales scheme from funds contributed by new investors. According to records, Caughman sought money from investors by telling them “he had lucrative automotive sales leads from local credit unions.” Then he told the investors that if they put up their own money, they would make an easy $800 in interest when the vehicle was sold to the credit union.