Summary:
- Adrian Kawuba, a former soccer player, pleaded guilty to wire fraud charges in Boston, facing a potential 20-year prison sentence. The United States Securities and Exchange Commission accuses him of orchestrating a Ponzi-like scheme, diverting investments meant for sports projects to fund a lavish lifestyle.
On December 21, 2023, Mr. Adrian Kawuba, a 33-year-old Ugandan national, found himself facing charges of wire fraud in the federal court in Boston. He entered a guilty plea to four counts, marking a significant turning point in his life. Now, he confronts the possibility of a minimum 20-year prison sentence in the United States and potential deportation to Uganda. These charges, initiated by the United States Securities and Exchange Commission, allege Kawuba’s participation in fraudulent activities that caused substantial financial losses to others.
Formerly a professional soccer player for the Drew Rangers and later the Pittsburgh Riverhounds, Kawuba’s career came to an end under unclear circumstances. The focus now shifts to his actions between May 2019 and November 2021 when he engaged in the interstate and international wiring of funds. Commission documents reveal that Kawuba entered into multiple investment and personal guarantee agreements with investors, promising significant returns of 25 to 50 percent in a short period.
These investments were supposedly directed toward financing short-term projects, such as youth sports, entertainment events, and player transfers between private soccer clubs in Africa and parts of Asia. However, it was later revealed that Kawuba had orchestrated a Ponzi-like scheme, using funds from later investors to pay off earlier ones, deviating from the promised investment objectives.
In November 2022, Kawuba’s actions caught up with him as he failed to meet his obligations under the agreements, leading to his arrest. The commission discovered that he had been using investors’ money to fund a lavish lifestyle, including personal trips, the purchase of a Lexus automobile, and extravagant shopping sprees at fashion and jewelry stores.
Court documents illustrate a stark contrast between Kawuba’s initial payments to core investors and his eventual descent into arrears. Complaints arose when he failed to pay $280,000 out of the $1.9 million owed, resulting in his arrest and subsequent arraignment before the federal court in Boston.
The Securities and Exchange Commission is now seeking various orders, including freezing Kawuba’s assets, requiring an account of all investors’ money, and prohibiting him from accepting or depositing any funds from investors pending case resolution. Additionally, they aim to repatriate his assets, recover ill-gotten gains, and impose civil penalties for his violations.
Judge William G Young has scheduled March 14 as the date for delivering Kawuba’s sentence. Media reports in the US suggest that each wire fraud charge could potentially carry a sentence of 20 years in prison, supervised release, hefty fines, victim compensation orders, and asset forfeiture.
In an unfortunate historical parallel, Kawuba’s case mirrors events from 15 years ago when another Ugandan, Nasser Ntege Ssebagala, faced charges in the same Massachusetts district area, resulting in a guilty verdict.
