Local News

Holly Springs man created Ponzi scheme with scissors, tape, copier

Posted June 7

— A Holly Springs man who cheated investors out of nearly $300,000 was sentenced Tuesday to four years in federal prison.

While working as a financial adviser at two Raleigh firms, Hugh Monroe Dyson created a fictitious oil and gas drilling firm called Keyport Oil that he pitched to clients from 1993 to 2012, authorities said. During that time, he used scissors, tape and a copier to fabricate stock certificates for investors. He then used their money for personal expenses and to pay other investors dividend checks, authorities said.

The Ponzi scheme collapsed in 2012, and investors lost more than $289,000.

Dyson, 67, was convicted of mail fraud, and U.S. District Judge James Dever III ordered him to make full restitution to his investors. That prompted Dyson to argue that he should receive a probationary sentence so he could put together the money to repay them.

Dever rejected the request after learning that Dyson has made no effort to pay any restitution in the last five years, even after investors won a civil court judgment against him for the money they lost.

3 Comments

Please with your WRAL.com account to comment on this story. You also will need a Facebook account to comment.

Oldest First
View all
  • Quid Malmborg Jun 7, 8:33 p.m.
    user avatar

    View quoted thread


    Not to change the subject but... LOL!!!

  • Linda Tally Jun 7, 5:21 p.m.
    user avatar

    Four years in jail is okay. Forty years would be better.

  • Wayne Hill Jun 7, 3:43 p.m.
    user avatar

    Amateur. Social Security's Ponzi scheme is much better and all they need are gullible Americans and the Washington establishment telling them how great it is. ROR