Federal law enforcement authorities are backed by a great wealth of resources, and they have been devoting a large portion of their resources to investigations of white collar crimes. As a result, a great many white collar crimes cases in Georgia end up in federal court.

The investigative phase in a white collar crimes case is vitally important. Often, law enforcement authorities will delay filing charges while they amass more evidence. Many times, this evidence comes when investigators elicit incriminating statements from a defendant. Because of this, it is vitally important for people who are implicated in a white collar crimes investigation to consult with an experienced criminal defense attorney as early in the process as possible.

Recently, an Atlanta man was indicted by federal authorities who accused him of running a Ponzi scheme that was worth as much at $7 million. Allegedly, the defendant took money from people in Georgia and other states who he convinced to invest in his hedge fund.

According to the federal indictment, the defendant promised investors monthly returns of between 2 percent and 3.5 percent as well as annual returns of as much as 50 percent. Allegedly, the defendant never invested the money and used the money invested by later investors to pay off earlier investors. Prosecutors allege that when some investors requested their money back, the defendant mailed them checks that bounced.

The defendant faces 14 separate counts in the federal indictment, including counts of wire fraud and mail fraud. Each count has a possible maximum sentence of 20 years in prison, a $250,000 fine or both.

Source: The Atlanta Journal-Constitution, “Atlantan indicted on Ponzi scheme that may have bilked $7 million from victims,” Marcus K. Garner, 7/5/2011