Officials from the US Attorney’s Office allege that Michael Patrick Corrigan solicited thousands of potential investors via email, and phone calls to invest in a false enterprise based on NASCAR Memorabilia.
Corrigan was arrested by FBI agents in Tuscaloosa Alabama June 6th. He appeared in the United States District Court in Birmingham where he was advised of charges against him, which included mail and wire fraud. However, his case will be relocated to Colorado, where he was indicted.
Corrigan’s organization was Racezing Mania Corporation (RZM), a corporation registered in Colorado in April 2006. RZM was to be a distributor of NASCAR memorabilia including die-cast cars and apparel. Corrigan and his wife retained control of the corporation, and installed a few investors as board members.
Corrigan solicited investors promising a percentage of the sales of NASCAR-related merchandise. He also sold membership to affiliate websites for $1,250. Affiliate websiteswere linked in spam email sent by RZM where consumers interested in purchasing memorabilia would visit to buy merchandise.
Corrigan promised investors would, at a minimum, receive $100 in net profit each week as well as leads and commissions for every sale. He also promised investors that RZM’s first year sales would total over $38 million.
Although none of Corrigan’s promises were based on reliable financial analysis, Corrigan received about $950,000 over three years.
Corrigan allegedly used the money he received for personal use, and falsely told investors he had invested more than $2 million of his own money in the venture.