Six charged with Ponzi scheme

SANTA ANA, Calif., Jan. 24 (UPI) -- Six Southern California men have been charged with orchestrating a Ponzi scheme that promised investors big returns from golf courses and other developments.

State Attorney General Jerry Brown alleges the group deceived more than 1,000 people, some of them retirees, the Los Angeles Times reported. Investors allegedly put in $52 million, with the accomplices pocketing $24 million and using the rest to provide dividends.

Carolina Development Co., based in Irvine, Calif., has already been investigated by the Securities and Exchange Commission. The company's president, Lambert Vander Tuig of Rancho San Magarita, and vice president, Jonathan Carman of Laguna Hills, were ordered in 2007 to pay judgments of $29.2 million and $2.1 million.

Carolina Development issued glossy promotional material that showed upscale housing around golf courses designed by top players such as Arnold Palmer and Greg Norman. Investigators say the development did not exist, although the company owned some land worth far less than its management claimed.

Four of the group were arrested Thursday, including Vander Tuig and Carman. Police were looking for a fifth man, and the sixth was expected to surrender Monday.