Former UT Kicker Charged in $2 Million Ponzi Scheme

January 25, 2013
Erxleben hold the NCAA record for longest field goal made at 67 yards.

Texas Longhorn Russell Erxleben holds the NCAA record for longest field goal made at 67 yards.

In Austin, Russell Erxleben is still heralded for kicking the longest field goal in NCAA history when he successfully split the uprights on a 67-yard field goal attempt back in October 1, 1977.  The former Longhorn and three-time All-American was drafted by the NFL’s New Orleans Saints.  Unfortunately, after unsuccessful attempts to return to football, Erxleben led himself to a life of crime.  Most recently, he was arrested on Thursday for running a $2 million Ponzi scheme that could land the 56-year old in jail for the rest of his life. 

From 2005-2009, Erxleben concocted an elaborate pyramid investment scheme in which he enticed investors to provide money for phony post World War I German government gold bearer bonds and in artwork from the likes of Paul Gauguin.  As Erxleben received investment proceeds, he would use the money to live a lavish lifestyle, to pay dividends to previous investors, and to prop up the massive pyramid scheme.  As all Ponzi schemes result, the money dries up and the pyramid collapses on itself.  

According to the federal indictment, Erxleben swindled over 500 investors out of millions of dollars.  If convicted, he could spend the rest of his life in jail as he faces 20 years in prison for each wire fraud and securities fraud count and another 10 years for each money laundering count.   

This isn’t Erxleben’s first battle with the law as he already served a seven year sentence for securities fraud.  Erxleben is currently in federal custody and is expected to appear in court on January 28 for his detention hearing.

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