Three Florida men have been indicted for their alleged participation in a Ponzi scheme involving approximately $3.7 billion. The three men were prosecuted in federal court on Wednesday, April 20, 2011.
Frank Vennes, a former associate of a fallen Minnesota businessman, Tom Petters, and two hedge fund mangers, David Harrold and Bruce Prevost, both 51, were each charged with four counts of securities fraud in association with a Ponzi scheme involving approximately $3.7 billion orchestrated through Petters Co. Inc. (PCI).
According to prosecutors, Mr. Harrold and Mr. Prevost received over $60 million in commissions by falsely telling investors that PCI was generating profits and that Mr. Vennes told them that they were only to deal with him concerning investments with PCI. Their alleged investment scam lasted from 2002 to September 2008.
Mr. Petters has been accused of duping investors out of billions by using false purchase orders to solicit investors. The unsuspecting investors were told that the money would be used for electronics that would be resold to retailers. However, prosecutors claim that no electronic deals ever existed.
The federal government has accused Mr. Harrold and Mr. Prevost of making material misrepresentations and concealing information about the PCI investments in an effort to solicit investors to purchase securities.
The law firm of David P. Meyer & Associates represents clients who have been harmed by investment fraud. For more information, contact us by calling toll free (800) 738-1960 or filling out our online form.