A Tennessee couple, Haskell (Trey) Knight and Emily (Ricciardelli) Knight, have been sentenced to federal prison for their involvement in an investment and bankruptcy fraud scheme. U.S. Chief Judge Shelly D. Dick handed down sentences of 48 months for Haskell Knight and 41 months for Emily Knight. Both will also serve two years of supervised release following their prison terms and are required to pay restitution to the victims.
According to court documents and guilty plea admissions, the Knights convinced four individuals to invest $50,000 in a startup business called Udoxa by making false claims about the company’s financial backing and prospects. The funds obtained were used primarily to pay off old business debts and cover personal expenses rather than being invested as promised. The victims were told they would be repaid with interest or receive ownership stakes in a legitimate business; neither occurred. Instead, the Knights provided elaborate excuses, including inventing a fake employee and fabricating IRS liens, claiming that these issues prevented repayment.
After securing the investments, the Knights filed for Chapter 7 bankruptcy in Florida’s Middle District, listing their victims among unsecured creditors. During bankruptcy proceedings, they submitted false statements regarding income, assets, and liabilities and made additional false statements under oath at creditor meetings—specifically failing to disclose significant income from network marketing businesses as well as other liabilities from previous ventures. They also falsely claimed unemployment while actually being employed at that time.
These actions hindered the bankruptcy trustee’s ability to conduct proper proceedings and resulted in creditors receiving less money than owed while allowing the Knights to discharge approximately $578,147 in debts improperly.
U.S. Attorney Kurt L. Wall commented on the sentencing: “Fraudsters need to understand that this type of criminal conduct will not be tolerated. This sentence is evidence of that effort. We, along with our federal partners, are committed to continuing to bring financial predators, like this couple, to justice.”
Special Agent in Charge Jonathan Tapp of the FBI New Orleans Field Office added: “The day of reckoning has come for this duo who have left a trail of financial destruction going back decades. We especially thank the victims for their patience in this case. This is a strong example of the unshakeable commitment the FBI has to protecting the American people from criminals who seek to do them harm physically or financially.”
The investigation was conducted by the Federal Bureau of Investigation with prosecution led by Assistant United States Attorney Jessica M.P. Thornhill.
