SC man said he’d fix credit, but really stole nearly $1 million, prosecutor says

A South Carolina man is going to federal prison after he was found guilty of stealing nearly $1 million from clients to pay off his debts, according to the U.S. Attorney’s Office.

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Joseph F. Wallace, a 51-year-old Duncan resident, was convicted by a federal jury on nine counts of wire fraud and one count of credit card fraud, the U.S. Attorney’s Office said in a July 17 news release.

During a four-day trial, the jury was shown evidence that Wallace marketed himself as “a self-made serial entrepreneur leading multiple business entities and living the American Dream in Upstate, South Carolina,” according to the release.

He owned and operated YMA Financial through which he offered various services such as credit repair, business planning and establishment of business credit, the U.S. Attorney’s Office said.

Beginning in late 2022, Wallace overextended himself in his pursuit of other business endeavors and he needed substantial infusions of cash to pay back previous clients, according to the release. This precarious financial situation led Wallace to make misrepresentations to new clients and to withhold material information, the U.S. Attorney’s Office said.

Wallace would direct clients to obtain various credit cards in aid of establishing the clients’ business credit, according to the release. To ensure the clients qualified for the new cards, Wallace often directed them to provide false information to the credit card companies, the U.S. Attorney’s Office said.

“The clients followed the instructions without questioning him because of his claimed expertise and involvement in community organizations,” prosecutors said in the release.

Wallace would then obtain large cash advances on the new credit cards and the clients’ existing credit cards, according to the release. Some of the advances were made with the clients’ permission, others were not, the U.S. Attorney’s Office said.

Wallace explained to clients that he would pay off the newly acquired balances within 30 days, and by paying off the advances promptly, Wallace told clients that this would demonstrate to creditors the clients’ trustworthiness and thus boost their credit scores and borrowing potential, according to the release.

Read more SC man said he’d fix credit, but really stole nearly $1 million, prosecutor says

However, when the credit card bills came due, Wallace did not pay the balances in full as he had promised, the U.S. Attorney’s Office said. Often Wallace would pay the minimum due or nothing at all, according to the release.

He provided the victims with multiple excuses, but the victims later learned that Wallace had used the credit card advances to pay other debts or to make purchases for other businesses, the U.S. Attorney’s Office said.

In total, Wallace stole more than $971,051.44 from the clients who were victims, according to the release.

Wallace faces a maximum penalty of 20 years in federal prison, a fine of up to $250,000 and restitution, the U.S. Attorney’s Office said. There is no parole in the federal system.

U.S. District Judge Donald Coggins presided over the trial and will sentence Wallace after receiving and reviewed a pre-sentence report from the U.S. Probation Office, according to the release.

“Fraud is not a victimless crime,” U.S. Attorney Bryan Stirling said in the release. “It undermines trust, devastates families and steals from hardworking people who have done nothing wrong.”

The case was investigated by the FBI Columbia Field Office.

Assistant U.S. Attorney Bill Watkins and Elle Klein are prosecuting the case. Judea Davis, a federal public defender in Greenville, was listed as Wallace’s attorney.