Christian Radio Host Patrick "Pat" Kiley of "Follow the Money" has been indicted for his alleged role in a multi-million dollar Ponzi scheme orchestrated by Trevor Cook. The U.S. Attorney's Office in Minnesota filed criminal charges against Kiley, along with Jason Bo-Alan Beckman and Gerald Joseph Durand, on July 19.
According to authorities, Kiley solicited investors for Cook's firms, including Universal Brokerage Services, through his radio program, which was produced out of one of Cook's homes. On the program, Kiley allegedly represented himself as a senior economist and a financial adviser.
According to the Star Tribune, Kiley denies that he drew in his listeners in order to perpetuate Cook's scheme. Instead, he insists he believed the foreign currency trading program was a legitimate opportunity. He further stated that his statements about his economic and financial aptitude and experience were part of a script written by Cook. Kiley said he had no choice but to read it. (To learn more about Kiley's comments, read the article here.)
The SEC filed a civil complaint against Kiley and Cook in November 2009. The SEC's complaint made the same allegations as the criminal charges filed last week by the U.S. Attorney's Office. The SEC's case against Kiley is still pending. (For additional details, read the SEC Litigation Release here.)
In August of 2010, Trevor Cook pled guilty to mail fraud and tax evasion for the $194 million foreign currency investment scheme. He also admitted to being the chief orchestrator. He was ordered to pay $155 million in restitution and sentenced to 25 years in federal prison.
Kiley, Beckman, and Durand are each charged with conspiracy, 11 counts of mail and wire fraud, and six counts of money laundering. Kiley has been released on a $100,000 unsecured bond.