Jerry O. Pearson, the former owner of Mid South Retirement Services, LLC in Boyce, Louisiana, has been sentenced to 63 months in federal prison for wire fraud. Acting United States Attorney Alexander C. Van Hook announced the sentencing by United States District Judge Dee D. Drell. In addition to his prison term, Pearson will serve three years of supervised release and pay $3,431,152.21 in restitution.
Pearson operated Mid South from 2012 to 2021 and managed Self-Directed Individual Retirement Accounts (SDIRA). These accounts allow investment in a broader range of assets than conventional IRAs. As the custodian of these accounts, Mid South handled approximately $40 million in assets.
The court revealed that Pearson executed a scheme to defraud clients by transferring funds from their SDIRAs without permission into other accounts he controlled. These included accounts belonging to Gray-Walk Farms, LLC—another company registered under Pearson's name—and his personal bank and investment accounts.
In total, Pearson transferred over $3.4 million from client funds for personal use and the benefit of his family and other businesses he controlled. He misled clients by claiming their funds were being invested as directed when they were not.
“Unfortunately, there were over 70 victims who fell prey to Pearson’s schemes and lies,” said Acting U.S. Attorney Alexander C. Van Hook. “This sentence should send a message that if you commit this type of fraud, you will go to prison.”
Special Agent in Charge Lyonel Myrthil of FBI New Orleans added, “Mr. Pearson abused the trust of his clients for the benefit of himself and his family."
The Federal Bureau of Investigation conducted the investigation with assistance from the Louisiana Office of Financial Institutions. Assistant United States Attorney Seth D. Reeg prosecuted the case.