Frank Mercado, the owner of hedge fund firm Tiger-Wolf Capital, has admitted to wire fraud, confessing to defrauding over 100 victims out of more than $700,000 through a fraudulent investment scheme, according to a report by Business North Carolina.
From July 2019 to December 2022, Mercado, a resident of Charlotte, North Carolina, executed a scheme that deceived friends, former colleagues and other social acquaintances by presenting himself as an experienced and successful options trading expert.
Operating under the name of his hedge fund, Mercado assured investors that their money would be used for options trading and similar investments. Instead, he misappropriated significant portions of the funds to support his personal lifestyle, including making large credit card payments and covering personal expenses such as Airbnb rentals, dining, and entertainment. Additionally, he used part of the funds to make Ponzi-style payments to earlier investors.
In court, Mercado admitted that his trading activities resulted in losses, contrary to the profitable performance he reported to his investors. He routinely sent fictitious updates via emails, text messages, and screenshots of supposed account portals, falsely indicating trading gains. These deceptive communications encouraged investors to contribute more funds or to retain their investments with him.
Following his plea hearing, Mercado was released on bond. The wire fraud charge carries a maximum prison sentence of 20 years, although a sentencing date has not yet been determined.
