Four Charged with Running an Investment Fraud Scheme
United States Attorney James L. Santelle announced today that a 31-count indictment was handed down Tuesday charging four individuals with running an investment fraud scheme from 2008 through 2012. Todd Dyer, age 51, a resident of Lake Geneva, Wisconsin, was charged in all 31 counts, including 21 counts of wire fraud, five counts of money laundering, and five counts of transporting funds obtained from fraud across state lines. Nicholas Hindman, age 63, a resident of Glen Ellyn, Illinois, was charged with engaging in the scheme with charges of wire fraud, money laundering, and transporting funds obtained from fraud across state lines. Melvin Krumdick, age 73, a resident of Oak Park, IL, was also charged with engaging in the scheme and with wire fraud and money laundering counts. Tracy Bolton, age 47, a resident of Lakemoor, IL, was also charged with engaging in the scheme to defraud and with counts charging wire fraud and interstate transportation of funds obtained by fraud. Each wire fraud count carries a maximum penalty of 20 years in prison, the money laundering counts and interstate transportation of funds obtained by fraud each carry a maximum penalty of 10 years’ imprisonment.
According to the indictment, the defendants created and marketed investment entities that were involved in purchasing valuable and scarce Midwest farmland property. The defendants offered investors an opportunity to invest in these entities by selling investors common stock, limited partnership interests, and stock warrants. Despite representations to the contrary, none of the investment entities ever purchased any farmland. According to the indictment, investors gave the defendants approximately $1.5 million, and instead of using the funds to purchase farmland, the defendants diverted the money and used it for personal purposes or to pay costs necessary to continue the promotion of the fraud scheme.
The case was investigated by agents from the Internal Revenue Service Criminal Division, and agents the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Joseph R. Wall and Benjamin W. Proctor.
The public is cautioned that criminal charges do not constitute evidence of guilt. An individual is presumed innocent until such time, if ever, that the government establishes his or her guilt beyond a reasonable doubt.