SERIAL FRAUDSTER COUPLE SENTENCED TO FEDERAL PRISON FOR FINANCIAL SCHEME TO DEFRAUD

United States Attorney Kurt L. Wall announced that U.S. Chief Judge Shelly D. Dick sentenced Haskell (Trey) Knight, age 61, and Emily (Ricciardelli) Knight, age 41, both of Franklin, Tennessee, were sentenced to terms of imprisonment for their roles in an investment and bankruptcy fraud scheme. Haskell Knight was sentenced to 48 months in federal prison and Emily Knight was sentenced to 41 months in federal prison. The Court further ordered both to serve two years of supervised release after completing their terms of imprisonment. In addition to their terms of imprisonment, the Court ordered the Knights to pay restitution to their victims.           

According to admissions made as a part of their guilty pleas, the Knights defrauded four individuals out of $50,000 through false and fraudulent claims regarding a startup business, Udoxa. The victims were provided with false information to get them to invest. This included the existence of a rich investor, the availability of formation capital, and the strength of the start-up. After getting the victims’ money, the Knights used the majority of the funds to pay old business debts and for personal expenses. Based on promises made, the victims were expecting to be paid back with interest and to have the option to gain an ownership stake in a legitimate company. Neither of these happened. Instead, elaborate excuses were provided to the victims as to why they were not getting their money, including creating a fake employee and fake IRS liens, to claim that their funds were tied up. 

Shortly thereafter, the Knights filed for Chapter 7 bankruptcy in the Middle District of Florida, and listed the Udoxa victims as unsecured creditors among others. In filing for bankruptcy, the Knights provided false information statement of income, assets and liabilities, as required by law and made numerous false statements under oath at the creditors’ meeting regarding this information. Specifically, they failed to disclose significant income from network marketing businesses as well as liabilities owed from prior business ventures and then gave false information under oath about their finances and more during the creditors’ meeting. The Knights both lied under oath at the creditors’ meeting claiming to be unemployed, despite being employed at the time.

These actions prevented the bankruptcy trustee from properly executing the bankruptcy proceeding, leaving the creditors, like the Udoxa victims, with less money than they should have received and allowing the Knights to walk away from approximately $578,147 in debts while keeping significant funds they were not entitled to keep.

U.S. Attorney Wall stated, “Fraudsters need to understand that this type of criminal conduct will not be tolerated. This sentence is evidence of that effort. We, along with our federal partners, are committed to continuing to bring financial predators, like this couple, to justice.”

“The day of reckoning has come for this duo who have left a trail of financial destruction going back decades,” said Special Agent in Charge Jonathan Tapp of the FBI New Orleans Field Office. “We especially thank the victims for their patience in this case. This is a strong example of the unshakeable commitment the FBI has to protecting the American people from criminals who seek to do them harm physically or financially.”

This matter was investigated by the Federal Bureau of Investigation was prosecuted by Assistant United States Attorney Jessica M.P. Thornhill, who also serves as Deputy Chief of Economic Crimes Unit.