Summerfield man sentenced to 19 years for Ponzi scheme and tax fraud

Date: August 22, 2025

Contact: newsroom@ci.irs.gov

Winston-Salem, NC – A Summerfield man was sentenced today, August 22, 2025, to more than 19 years in prison after pleading guilty to wire fraud, money laundering, securities fraud, tax evasion, and failure to file tax returns in connection with a $20 million Ponzi scheme, announced United States Attorney Clifton T. Barrett of the Middle District of North Carolina (MDNC).

William Lamar Rhew, III was sentenced to 235 months’ imprisonment followed by 3 years of supervised release by the Honorable Thomas D. Schroeder, United States District Judge in the United States District Court for the MDNC.

According to court records, from November 2017 to December 2023, Rhew defrauded at least 117 investors of at least $24 million. He induced victims to invest with his company Chadley Capital, LLC which would allegedly buy accounts receivable at a discount, sell them for a profit, and provide consistently high rates of return on investment. Rhew touted the company’s increasing deal flow and underwriting standards and, in offering materials, claimed $300 million in transactions in 2023, consistent returns in excess of 20% per year, and nearly 74% total growth over 24 months. All of Rhew’s representations were false. Instead of investing victims’ funds as promised, Rhew used their money to pay his personal expenses including the purchases of a boat, a beach house, and luxury cars, payments on his personal credit cards, and to make “interest” and “withdrawal” payments to other victim-investors as part of the Ponzi scheme.

In addition, for Tax Years 2018 through 2022, Rhew willfully failed to report nearly $9 million in income to the Internal Revenue Service (IRS) and evaded over $3 million in taxes. According to court records, Rhew maintained a shell business entity, funded in part by Chadley Capital, LLC victim funds, to support his personal lifestyle. Rhew claimed payments into this shell business entity as business expenses but lied to his accountant about the existence of any corresponding reportable income. Rhew also falsely reported his personal spending from Chadley Capital, LLC as business expenses. Finally, Rhew willfully failed to file Forms 1040, U.S. Individual Income Tax Return, for the tax years 2018, 2020, 2021, and 2022.

“This defendant devastated the personal finances of individual victims and defrauded the public at large by failing to file and pay taxes to the IRS,” said United States Attorney Barrett. “We will prosecute such schemes to the full extent of the law. We appreciate the robust investigation conducted by our law enforcement partners in this matter.”

“The defendant victimized his investors and defrauded American taxpayers by concealing his income from the IRS and evading his tax liability,” said Special Agent in Charge Donald “Trey” Eakins, Charlotte Field Office, IRS Criminal Investigation. “IRS-CI’s collaborative investigative efforts alongside our law enforcement partners led to justice for the victims in this case.”

“The time Rhew will spend behind bars will never make up for the millions of dollars he stole from more than a hundred people. He promised to make them rich, instead Rhew is the one who profited. He bought fancy cars, a beach house, and even a boat. Fraud of this magnitude can have a lasting impact not only financially, but emotionally for victims. The FBI and our law enforcement partners are committed to hold fraudsters who rip off hard working Americans accountable,” said James C. Barnacle Jr., the FBI Charlotte Special Agent in Charge.

“Through the combined efforts of the SBI and our partner agencies, this individual was held accountable for exploiting his investors’ trust,” said NCSBI Special Agent in Charge Chris Cardwell. “Together, we will continue to pursue those who commit fraud and help protect our citizens.”

The case was investigated by the Internal Revenue Service-Criminal Investigation, Federal Bureau of Investigation, and North Carolina State Bureau of Investigation (NCSBI). This case was prosecuted by MDNC Assistant U.S. Attorney Laura Jeanne Dildine.

IRS Criminal Investigation (IRS-CI) is the law enforcement arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money laundering, public corruption, healthcare fraud, identity theft and more. IRS-CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a 90% federal conviction rate. The agency has 19 field offices located across the U.S. and 14 attaché posts abroad.