Stephen J. Klos, 86, recently pleaded guilty to securities fraud for an alleged
Ponzi scheme that took in more than $3 million from investors in the Seattle area.
According to prosecutors in the case, Klos targeted members of his church
and elderly investors in the alleged scam. Klos was charged with 28 counts
of securities fraud last year, and he faces up to 68 months in prison
if he is convicted.
According to King County Prosecutor Dan Satterberg, “The defendant
used his charm and influence to persuade elderly victims to invest with
him, but instead used the money for his personal benefit and lifestyle.”
Klos has been accused of luring elderly investors from the church into
the investment scheme with promises to invest the cash for them and bring
in good returns. Unfortunately, prosecutors believe that he was instead
using the cash to pay off prior investors in a classic Ponzi-scheme fashion
and that he kept some of the cash for himself.
A former pastor from Mercer Island Covenant Church, the church where Klos
allegedly recruited many of the victims in the scam, said that he took
concerns about Klos to the police back in 2008 and that Klos was eventually
asked to leave the church after repeated requests to stop soliciting the
If you or a loved one has been the victim of a Ponzi scheme or investment
scam, don’t wait until it’s too late to recover your investment
losses. Speak with the experienced securities fraud lawyers with Meyer
Wilson in a FREE, no-obligation legal consultation to discuss your rights
and options today.