Team owner with NASCAR connection pleads guilty in $40 million fraud case

A former racing team owner who allegedly used the NASCAR community to find his victims is facing a potentially lengthy jail term after pleading guilty in court on Monday.

Andrew Franzone previously owned ATF & Gunslinger, a racing team guided by former NASCAR veteran Mike Skinner, who the courts say was one of his many victims.

After being indicted on charges of securities fraud and wire fraud in 2021, Franzone's case was set to begin in a Manhattan court on Monday. According to the prosecution, Franzone had tricked more than 100 victims, including drivers and fellow racing fans, into investing $40 million into his hedge fund, lying to them about its liquidity and assuring investors that their money was safe.

It seems, however, that they were actually being locked up in risky ventures, according to Business Insider (BI), who also revealed that a judge last Thursday barred Franzone's planned line of defense that would have seen him argue that his gambles in the stock market proved to be extremely successful. For example, a $250,000 investment in CoreWeave reportedly grew to a worth of more than $55 million.

BI also revealed that the same judge also made the decision last Thursday to allow prosecutors to argue that Franzone used the NASCAR community to find his victims and indulge in his expensive racing hobby.

NASCAR fraudster facing jail

According to the Southern District of New York, Franzone is now facing decades in jail, although it remains to be seen just how long he is sentenced for, with BI's report indicating that a 'lesser sentence is likely' than the maximum term.

"Franzone, 44, of Fort Lauderdale, Florida, is charged with one count of securities fraud, which carries a maximum potential sentence of 20 years in prison, and one count of wire fraud, which carries a maximum potential sentence of 20 years in prison," a 2021 indictment read.

Elsewhere in the indictment, Manhattan U.S. Attorney Audrey Strauss said: “Andrew Franzone allegedly promised his clients access to his successful liquid trading strategy and consistent, positive trading returns,"

"As alleged, those promises were lies. Franzone lied about his fund’s investments and performance, and he lied in promising clients that they had could readily access their invested capital.

"While his investors lost money, Franzone enriched himself. We will continue to work with our law enforcement partners to protect investors from these types of deceptive practices."

After his guilty plea, Franzone's lawyer, Joseph R. Corozzo, told BI that investors in the hedge fund would be made whole, potentially as high as 10 times over.

"Everybody's going to be made whole, maybe as much as 10 times over," Corozzo explained.

"He was right about his investments in the end.

"That's always been his reputation. Quirky, but brilliant."

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