ALEXANDRIA, La. – Jerry O. Pearson, 62, of Alexandria, Louisiana, has been sentenced to 63 months in federal prison for wire fraud, Acting United States Attorney Alexander C. Van Hook announced. U.S. District Judge Dee D. Drell also ordered Pearson to serve three years of supervised release and pay $3,431,152.21 in restitution to his victims.
Pearson, the former owner and operator of Mid South Retirement Services, LLC, managed Self-Directed Individual Retirement Accounts (SDIRAs) from 2012 to 2021. SDIRAs allow for a broader range of investment options than traditional retirement accounts. Pearson’s company, based in Boyce, Louisiana, oversaw approximately $40 million in assets. Additionally, he was the registered agent and manager of Gray-Walk Farms, LLC, an unrelated business located in Alexandria.
According to court records, Pearson engaged in a fraudulent scheme by misappropriating client funds held by Mid South. Without their permission, he transferred money from the company’s client accounts into various other accounts under his control. He used intermediary accounts in financial institutions throughout the Western District of Louisiana and beyond to conceal his actions. The stolen funds were ultimately funneled into Gray-Walk Farms’ accounts, Pearson’s personal bank accounts, and investment accounts in his name.
In total, Pearson diverted $3.4 million from client retirement accounts, using the money for personal expenses, his family, and other business ventures. To cover up the scheme, he falsely assured clients that their investments were being handled as directed. Pearson pleaded guilty to one count of wire fraud on August 16, 2024.
“Unfortunately, over 70 victims fell prey to Pearson’s schemes, many losing their life savings and retirement funds,” said Acting U.S. Attorney Alexander C. Van Hook. “This defendant conned people for years, but justice has caught up with him. This sentence should send a clear message: if you commit financial fraud, you will go to prison.”
“Mr. Pearson abused the trust of his clients for personal gain,” said Lyonel Myrthil, Special Agent in Charge of FBI New Orleans. “The FBI will continue working with partners like the Louisiana Office of Financial Institutions to bring justice to those who are victimized by financial crimes.”
The case was investigated by the Federal Bureau of Investigation (FBI), with assistance from the Louisiana Office of Financial Institutions. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
