Accused Fraud Artist Surrenders To Authorities After Being Indicted In $5 Million Investment Scam

losangeles.fbi.gov, Jan 18, 2007

A transient who was indicted on fraud and money laundering charges for allegedly bilking several victims out of more than $5 million with promises of huge returns on their investments has surrendered to federal authorities.

Steven M. Ferguson, who formerly resided in Marina Del Rey and Las Vegas, Nevada, was indicted last month on 24 charges that outline a scheme in which investors were told their money would be used to make bridge loans to companies or to invest in projects such as a waste-treatment plant in New Jersey.

Ferguson surrendered himself yesterday morning at United States District Court in Los Angeles. Ferguson made his first court appearance yesterday afternoon, at which time a Magistrate Judge ordered him held pending a detention hearing set for tomorrow morning at 11:00.

According to the indictment, Ferguson solicited money from investors by posing as a successful businessman and promising that investments would yield large returns. However, instead of investing any of the money, Ferguson allegedly misappropriated most of the investors’ money to pay for his lavish lifestyle, which included part ownership of a Lear jet, golf trips to Pebble Beach, a luxury home and meals at the finest restaurants in Southern California.

The indictment, which was returned by a grand jury on December 7, 2006, details the scheme in which Ferguson attempted to shield himself from detection by setting up a series of shell companies and obtaining credit in the names of his victims, including an employee and a consultant. Read more at fbi.gov