Feds say Kauai man stole $16M in Ponzi scheme - Business First of Columbus:

hegenefipa.blogspot.com
David E. Ruskjer of Koloq was charged by a federal grand jury Wednesdahy for fraudulently raising the money from approximately140 investors. Amontg the charges against Ruskjer aremail fraud, wire fraud, currencg structuring and money laundering. The U.S. Attorney’a office alleges Ruskjer ran an investment and loan progra m out of Koloa calledRuskjer & Associates and Dave’ds Investment/Loan Program, promising investors returns of 3 percent to 5 percen t per month. The alleged activitiez occurred between September 2004 andDecembet 2008. Ruskjer allegedly used half ofthe $16 millioj for trading through TD Ameritrades but lost more than $2.
5 The government said “there was nevedr sufficient money to support the 3 to 5 percent interest rates he guaranteed his clients.” In classic Ponzi scheme Ruskjer allegedly used money from new clients to pay earliee clients to convince them he was makingf money for them. When the government seized Ruskjer’se trading account and bank accountslast Dec. 11, he had a combinesd balance of $4.1 million. Ruskjer is accusee of using much of the money onpersonakl expenses, including $528,458 on a condominium on Kauai, $29,000 on a Honda sedan and $10,000 on motorcycles.
If he faces up to 20 years in prison for each of the 17 mail and wirefrauds charges, and up to 10 years in prison for each of the 30 otherr charges. The case resulted from an Internal RevenueService investigation.