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.
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 (888) 390-6491 or filling out our online form .