Thursday, February 23, 2012
Prosecutors: Ponzi scheme takes $40 million from victims
A federal grand jury in Charlotte this week indicted four men in connection with what prosecutors allege was an investment fraud conspiracy.
Prosecutors have accused the men of operating "hedge funds" as part of a conspiracy that took in $40 million from victims for a Ponzi scheme operating under the name Black Diamond Capital Solutions.
The indictment alleges that the defendants lied to get money from their victims by claiming, among other things, that they had done due diligence on Black Diamond and were operating legitimate hedge funds with significant safeguards. In reality, prosecutors say, neither claim was true.
Prosecutors allege that one of the men stole more than a million dollars from victims to build his personal mansion.
To read the U.S. Attorney's Office's news release, click here.
To read the indictment, click here.
-- Gary L. Wright
Posted by Gary L. Wright at 3:47 PM