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Man Faces Prison For 9 Million Dollar Ponzi Scheme

April 12, 2011
Total Loss: $9 Million

A Santa Barbara con man is set to be sentenced this morning for swindling about $9 million from investors in the Southland and elsewhere, leaving some victims so broke they considered suicide, federal prosecutors said.

Peter Jerald Frommer, 35, pleaded guilty last November in Los Angeles federal court to wire fraud, money laundering, and tax evasion in connection with a Ponzi scheme that falsely promised "guaranteed" returns of up to 15 percent in as little as six weeks, according to the U.S. Attorney's Office.

Source: Beverly Hills Courier
Posted in: ACH and Wire Fraud
Tags: Ponzi schemewire fraudfraud detection