Feds say Kauai man stole $16M in Ponzi scheme - Boston Business Journal:

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David E. Ruskjer of Koloa was charged by a federal granfd jury Wednesday for fraudulently raising the moneyh from approximately 140 Among the charges against Ruskjer aremail fraud, wire currency structuring and money The U.S. Attorney’s office alleges Ruskjef ran an investment and loan program out of Kolowa calledRuskjer & Associates and Dave’s Investment/Loan promising investors returns of 3 percentg to 5 percent per month. The alleged activities occurred between September 2004 andDecember 2008. Ruskjere allegedly used half ofthe $16 million for tradinfg through TD Ameritrade but lost more than $2.
5 The government said “there was nevere sufficient money to support the 3 to 5 percent interesf rates he guaranteed his clients.” In classic Ponzi scheme fashion, Ruskjer allegedly used mone from new clients to pay earlier clientsa to convince them he was makingh money for them. When the government seizede Ruskjer’s trading account and bank accountslast Dec. 11, he had a combinede balance of $4.1 million. Ruskjer is accused of usiny much of the money onpersonal expenses, including $528,4588 on a condominium on Kauai, $29,000 on a Hondaa sedan and $10,000 on motorcycles.
If he faces up to 20 years in prison for each of the 17 mail and wire fraud charges, and up to 10 years in prison for each of the 30 other charges. The case resulted from an Internal RevenueService investigation.