A Tennessee couple, Trey and Emily Knight, pleaded guilty to federal fraud charges, admitting to defrauding investors and making false statements in bankruptcy filings, as reported by the U.S. Attorney’s Office for the Middle District of Louisiana.
The Knights, residing in Franklin, Tennessee, were involved in soliciting $50,000 in fraudulent loans for Trey Knight’s business, Udoxa, which did not engage in any sales activity. According to authorities, Trey Knight misled potential investors about the existence of a wealthy investor, available capital, and the viability of Udoxa to secure loans.
Victims were promised repayment with interest and the opportunity to gain ownership in a legitimate company. However, the funds were instead misused for personal expenses and to settle previous debts.
The U.S. Attorney’s Office revealed that the Knights filed for bankruptcy in May 2017 in the Middle District of Florida, listing the victims as unsecured creditors. During the bankruptcy process, Trey Knight failed to disclose significant income from network marketing businesses, omitted liabilities from earlier ventures, and provided false financial information under oath during a creditors’ meeting.
Both defendants falsely claimed to be unemployed, despite having jobs at the time. Their actions hindered the bankruptcy trustee’s ability to manage the case, which reduced the recovery of funds for creditors, including Udoxa investors.
This fraudulent scheme allowed the Knights to avoid repaying their debts while keeping money they were not entitled to, leaving victims without rightful compensation.
