Ex-CPA indicted in Arizona Ponzi scheme

April 20, 2012 at 1:54 PM

SCOTTSDALE, Ariz., April 20 (UPI) -- A former Arizona accountant was indicted this week in an alleged Ponzi scheme that federal prosecutors said fleeced clients out of about $7 million.

Daniel Wise, 55, Scottsdale, faces 102 counts of fraud and money laundering in the alleged scheme, which involved making short-term, high-interest loans for real estate ventures in 2005-08.

The U.S. Attorney's office in Phoenix said in a written statement that Wise solicited some $66 million from investors to bankroll the loans; however, the loans were never made. Most of the funds were used to pay other investors with Wise allegedly skimming off $7 million for himself.

"This scheme serves as an unfortunate reminder that all investors, both novice and experienced, should exercise caution before committing their hard-earned money to investment opportunities that promise high-yield returns with little or no risk," said Acting U.S. Attorney Ann Birmingham Scheel.

Related UPI Stories
Latest Headlines
Trending Stories
Philadelphia Community College on lockdown, reports of gunman
Boehner delays House vote for new speaker
NASA releases thousands of Apollo mission photos on Flickr
Snowden: U.S. won't respond to offers to serve prison time
FDA approves new treatment for advanced lung cancer