Memorandum
- From
- Delaney Sawyer via Fortune | FORTUNE
- Date
- Filed
- News·4 min to read
- Re
Texas Businessman Sentenced to 13 Years in Prison for $2 Million Fraud Scheme
ReTexas Businessman Sentenced to 13 Years in Prison for $2 Million Fraud Scheme
Clayton Lloyd Iley, 41, of Stephenville, Texas, was sentenced to 160 months in federal prison for wire fraud and aggravated identity theft. He ran a fake Defense Department investment program and stole insurance clients' personal information to fund a collection of more than 90 exotic and collector vehicles, which will be sold to repay victims.
A Texas businessman who ran a fake Defense Department investment program and stole his insurance clients' identities to buy a fleet of exotic cars will spend more than 13 years in federal prison, the U.S. Attorney's Office for the Northern District of Texas announced.
Clayton Lloyd Iley, 41, of Stephenville, was sentenced to 160 months for wire fraud and aggravated identity theft, according to prosecutors. He pleaded guilty in June, and a U.S. district judge imposed the sentence on Oct. 1. A lawyer for Iley could not be reached for comment.
Prosecutors said Iley operated an insurance brokerage in Cross Plains, Texas, and from January 2020 through May 2026 moved money through two companies he controlled, including Spartan Global Security, which did business as «Black Eagle PMC» and offered private military contracting services. He told victims he could invest their money in a «Bonded Note» loan program that the Defense Department supposedly offered to private military contractors. The program did not exist. Instead, Iley collected more than $2 million and spent it on personal expenses and other parts of the scheme, authorities said.
He also took premium payments from insurance clients without ever opening their policies, then handed victims' personal information to banks to obtain credit cards in their names without their knowledge, according to prosecutors. He ran the charges through Spartan Global's accounts as business receipts and used the cards to pay personal bills and make payments toward the cars.
«Clayton Iley's conduct caused real financial and emotional harm to the victims he targeted, many of whom trusted him with their personal information and hard-earned money,» said U.S. Attorney Ryan Raybould. «This sentence reflects our commitment to holding fraudsters accountable. Those who steal from members of our community, manipulate them with fabricated schemes and misuse their identities will face significant federal consequences.»
As part of his plea agreement, Iley agreed to forfeit more than 90 exotic and collector vehicles bought with money from the scheme. As of July, investigators had seized 22 of them, according to the Justice Department. The collection reads like a car show: at least seven Lamborghinis, Ferraris and Maseratis, including a 2012 Aventador, a 2015 Huracán, two Ferrari 488s and three Maserati MC20s. Based on current listings, those vehicles alone are estimated to be worth between $1.3 million and $2.1 million combined.
The list also includes two Dodge Vipers, a Porsche Taycan, a Mercedes-AMG coupe, a Jeep Gladiator and a Ram pickup, plus a throwback garage featuring a 1968 Firebird, a 1979 Trans Am, three Camaros and a 1973 Plymouth. A Humvee and two military trucks round out the named vehicles. The estimated value of the roughly two dozen vehicles the Justice Department has identified is between $1.8 million and $3.1 million, though the department has not released official values and most of the 90-plus cars have not been named.
Authorities will sell the vehicles to pay restitution to victims. The case highlights the growing use of identity theft to fund lavish lifestyles, with federal prosecutors increasingly pursuing asset forfeiture to recover money for those harmed. The Justice Department's announcement did not specify how much restitution Iley will owe or when the vehicle sales will begin.
5
