Former U.Va. Football Player Standing Trial In $9M Investment Fraud

U.S. District Judge John A. Gibney Jr. on Monday called a defendant - who is accused of swindling about $9 million from more than 60 investors - a liar, saying he thought the man would run rather than face certain conviction.

"He is not a truthful person and will do whatever he needs to get out of trouble," Gibney said of former football player at L.C. Byrd High School, Fork Union Military Academy and the University of Virginia, after six days of testimony.

"I think there is a strong likelihood that Mr. (Merrill) Robertson won't come back. The evidence is very, very overwhelming in favor of the prosecution. ... His family's ties to the area are diminishing; he's lost his house here; he has no job; his financials are nonexistent."

The 37-year-old Chesterfield County resident, who had been released on bond, was taken aback by the judge's comments and looked toward his attorneys with wide eyes and an open mouth.

After a brief hearing, Gibney revoked Robertson's bond, and U.S. marshals took him into custody overnight.

However, Robertson's guilt or innocence is not up to Gibney, but rather a jury - the judge's remarks came after he had dismissed the jurors for the day. The eight men and eight women had spent most of Monday hearing directly from Robertson.

"My goal was never to take my friends, and they were my friends, for failed investments," Robertson testified. "I never intended to go this way."

Authorities allege that Robertson and Sherman Carl Vaughn, 46, of Blackstone, operated Cavalier Union Investments LLC and Black Bull Wealth management LLC by getting people to invest money under false pretenses. An agent with the Internal Revenue Service testified that from 2008 to 2016, the two took in $10,490,000 from investors, paid $1,490,000 back to some of them and still owe $8,952,000. Clients included some of Robertson's former coaches, a Sunday school teacher and a nurse.

Robertson faces 15 charges including conspiracy to commit mail fraud, wire fraud and bank fraud; mail, wire and bank fraud; and money laundering

Vaughn, who pleaded guilty last September to related charges for his role in the investment scheme, testified against Robertson last week, saying Robertson identified potential investors through contacts he developed while playing football.

Instead of using clients' money for investments that included flipping homes and other real estate deals, to buying chain restaurants, to refining coal for energy, the money was spent to repay earlier investors or on personal expenses, tuition, charitable donations, mortgage payments, and vacations to Hawaii, Disney World and elsewhere.

"You collected money from clients for 4½ years before you opened even one business, isn't that right?"

Eugene Monroe, a first-round NFL draft pick in 2009 who had played football at U.Va. after Robertson.

She pointed to a $101.01 charge for a Chili's Bar and Grill in Midlothian. "Did you tell Eugene Monroe that his money went to pay for you to dine at Chili's?"

Robertson chuckled.

"I'm sorry, it's not funny," he said. "I'm just trying to explain ..."

Judge Gibney cut him off.

"No, it's not funny," the judge admonished him. "You'd do well just to answer the question asked."

Robertson admitted to lying on loan applications, falsifying documents to secure loans and using clients' money for personal expenses, but he adamantly denied intentionally defrauding anyone. He blamed Vaughn, who Robertson claimed handled all the "back office" transactions and kept him in the dark about the progress of their investments.

Both the prosecution and defense rested Monday. The case is expected to resume at 10 a.m. Tuesday with closing arguments before the jury begins to deliberate.