UBLISHED FRIDAY, JULY 7, 2000
Federal charges were filed this week against 11 people who allegedly swindled investors out of $95 million through a trading program that turned out to be a multimillion dollar ``pyramid scheme.''
The charges against the 11 defendants include conspiracy to commit wire fraud, securities fraud and money laundering.
Karen Mason, Pensacola Public Affairs Coordinator with the state Comptroller's Office, said the defendants will be arraigned in Pensacola federal court on July 20 before Judge Susan Novotny.
Wealthy investors were lured by the promise of high-yield, low- risk, exclusive investment opportunities. Investigators say the investment programs never existed, and funds collected from later investors were used to pay earlier investors in an effort to promote the fraud.
Money was laundered through a number of different corporate entities and bank accounts until it was eventually given to the defendants.
State Comptroller Bob Milligan wants to remind people that investments always involve an element of risk, Mason said in a news release Friday.
Mason urged potential investors to call the Florida Department of Banking and Finance's consumer hotline _ 1-800-848-3792 _ to find out if both the firm and the security are properly registered, and to see if the agent has a history of disciplinary problems.