Web CD site was a fraud, police say
Police say a Boston man used a website that promoted a high-yield certificate of deposit to collect hundreds of thousands of dollars that he used for himself, including to make rent payments.
Michael Luckett was arraigned yesterday in Boston Municipal Court and was being held on $400,000 bail after pleading not guilty to charges of fraud. Luckett, 38, of Tremont Street, is accused of creating a website for a company called TransNational Fund and advertising a 6.35 interest rate for a 9-month certificate of deposit - significantly higher than the typical rate offered by banks and credit unions. Detective Steven Blair of the Boston Police special investigation unit said no certificates were purchased by Luckett.
"People were flooding him with money, tens of thousands of dollars, and he was using it to pay rent," he said. "So many people believe what they see on the computer screen."
Authorities were alerted to the suspicious activity earlier this week by Eastern Bank, Blair said, after a branch noticed that Luckett deposited $50,000 into an account that previously had a $1 balance. Luckett was arrested Thursday at an Eastern Bank branch at 265 Franklin St., where he was attempting to withdraw $40,000. About $300,000 was spread among 10 accounts under the name of Luckett's company, police said.
Jeffrey Denner, Luckett's attorney, said the Suffolk County district attorney's office did not present evidence that Luckett committed any wrongdoing.
"I don't believe that he has any other obligations than to repay the money with the agreed interest rates," he said, adding that Luckett still has several months under the terms of the contracts to make the repayments and has no restrictions on how funds he received are spent in the interim.
Jake Wark, spokesman for the district attorney's office, said it is unclear how much money Luckett received or how many people sent him checks. So far, police say, they have identified one, a 67-year-old woman living near Philadelphia, who sent $64,000 to Luckett in August.
"She was crying her eyes out yesterday," Blair said. "She hadn't told her husband yet."
A court hearing is scheduled for Oct. 17.
Se Young Lee can be reached at vlee@globe.com.
