Former NFL kicker was charged with fraud after Russell Erxleben was arrested for running a Ponzi scheme like Bernie Madoff did.
Former NFL kicker Russell Erxleben has previously served federal prison time for securities fraud and it is likely he will return for a second stint. According to the Associated Press, Erxleben was arrested on Thursday on new charges of running an illegal Ponzi investment scam that netted more than $2 million.
According to the Associated Press, the federal indictment says that Erxleben wrongly scammed investors from 2005 to 2009 by taking part in fraudulent deals that "promoted dealing in post-World War I German government bonds and a work of art purportedly by French painter Paul Gauguin."
The report continues to say that the 56-year-old then used the investments to pay himself as well as previous investors, creating a Ponzi scheme. The former NFL kicker was indicted on five counts of wire fraud, one count of securities fraud and two counts of money laundering. The wire transfers and security fraud charges have penalties of up to 20 years, while he could serve 10 for the money laundering charge.
According to the Associated Press, U.S. Magistrate Judge Mark Lane ordered Erxleben held in custody until his next court appearance Jan. 28. Erxleben requested a court-appointed attorney but told the court he may also seek to hire private counsel.
"Erxleben made various wire transfers using numerous financial accounts which were opened and maintained by others, including family members, in an effort to avoid detection," Fields said.
Erxleben previously was sentenced to seven years in federal prison back in 1999 for taking part in an investment scam that robbed $36 million from investors. According to the indictment, Erxleben did not disclose that conviction or the fact his still owed $28 million in restitution, to his later investors, which could be an issue for him at sentencing.
Erxleben will remain in federal custody pending a detention hearing set for next week, Fields said.
Erxleben was an All-American kicker at Texas and played for the New Orleans Saints from 1979 to 1983 and last tried t mount a comeback for the Detroit Lions in 1987. Erxleben was taken with the number 11 kick by the Saints, which was the second highest selection of a kicker in the draft at the time, with the highest drafted kicker being Charlie Gogolak
While playing at Texas, Erxleben was an All-American in three straight years from 1976 to 1978 before being taken in the first round of the draft. He is the only kicker to make three straight All-American teams and was a consensus choice each time.
Erxleben shares the record for longest field goal in NCAA history at 67 yards and used a two-stop kicking style. His former head coach Fred Akers said of the kick to the Daily Texan, "It was like a gunshot. We couldn't believe a ball was going that far. It had another eight yards on it."
Erxleben started off in the financial industry after retiring from the NFL and founded Austin Forex International in Austin, specializing in foreign exchange trading. According to the Associated Press, Erxleben was investigated in 1999 by the Texas State Securities Board and the Internal Revenue Service and pleaded guilty to one count of conspiracy to commit securities fraud, mail fraud and money laundering, and a second count for securities fraud, in connection with misleading statements regarding the past performance of Austin Forex.
He later was ordered to pay back $28 million in restitution and a one million dollar fine, but now faces new charges. Erxleben has a son, Ryan Erxleben, who is a punter for the Texas Tech University football team.
