Former North Dakota Investment Adviser Sentenced to 11 Years in Prison for Orchestrating a Ponzi Scheme

Posted on September 13th, 2018 at 1:48 PM
Former North Dakota Investment Adviser Sentenced to 11 Years in Prison for Orchestrating a Ponzi Scheme

From the Desk of Jim Eccleston at Eccleston Law LLC:

Barred North Dakota investment adviser, Kevin Wanner has been sentenced to 11 years in prison after pleading guilty to mail fraud and money laundering.

More specifically, between 2001 and 2015, Wanner, who was employed by Minneapolis-based Questar Capital Corporation at the time, sold fictitious certificates of deposit and unregistered interests in pooled investment vehicles totaling $5 million to at least 66 clients. Moreover, rather than investing his clients’ money as promised, Mr. Wanner conducted a classic Ponzi scheme by using money from one investor to pay interest to the next investor.

In addition, according to the criminal complaint, Wanner co-mingled his clients’ funds between his personal and business accounts after convincing them to purchase bogus investments and to join a “fraudulent investment club” he called the Bulls and Bears Investment Club.

Earlier this year, the North Dakota Securities Department fined Wanner $2.4 million in restitution. However, according to prosecutors, additional restitution likely will be owed to at least 44 victims in unpaid principal.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.   

Related Attorneys: James J. Eccleston

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