NFL Hall of Famer Emmitt Smith and comedian-turned-TV host Steve Harvey are among the victims of three alleged fraudsters busted yesterday in a $2.5 million Ponzi scheme, a law-enforcement source told The Post.
The scam allegedly involved promises to investors of returns of at least 25 percent by financing the mining of gold and diamonds in West Africa for sale in the United States.
But only a “small portion” of the money was transferred to Africa, with most of it instead used to repay other investors or spent on personal expenses, according to the Manhattan US Attorney’s Office.
Court papers say defendant Charles Huggins, a music-industry veteran and the ex-husband of singer Melba Moore, led the operation, and used his JYork Industries and Urogo companies to facilitate the scam.
It was uncovered after one of the victims “cold-called” the FBI.