LOS ANGELES, Oct. 2 (UPI) -- A California man was charged Friday with running a Ponzi scheme that took in $191 million from investors who were promised high returns in real estate.
Bruce Fred Friedman, 60, is in custody in France, the U.S. Department of Justice said. He was arrested Sept. 13 at a hotel in Cannes.
Investigators say Friedman ran Diversified Lending Group, headquartered in Sherman Oaks, Calif. Friedman allegedly offered "secured lending notes" with returns described as 9 percent or 12 percent.
Friedman claimed to have invested in real estate across the country, buying properties, fixing them up and renting them out, prosecutors said. He allegedly used some of the money from new investors to pay returns to earlier ones.
Investigators say he took in as much as $191 million and allegedly spent much of the money on other businesses, on investments and on charitable contributions.
The government is seeking his return from France for trial in the United States.
