Arrest in $11 Million Ponzi Scheme
|U.S. Attorney’s Office November 15, 2010|
SACRAMENTO—United States Attorney Benjamin B. Wagner announced today that Christopher Jackson, 43, of Sacramento, was arrested on a complaint charging wire fraud. Jackson appeared today before Magistrate Judge Gregory G. Hollows and was released on pretrial conditions that include a bar on his selling investments of any kind.
The complaint alleges that between 2005 and 2009, Jackson, using the corporate name Genesis Innovations, recruited people to invest in real estate. The complaint further alleges that Jackson promised investors a 14 percent annual rate of return and convinced them to entrust him with their retirement savings. According to the complaint, Jackson received about $11 million dollars from investors, but only invested about $2.5 million in real estate. The complaint states that the rest of the money was used to distribute purported investment returns and to fund Jackson’s lavish lifestyle, which included a leased Lamborghini and Range Rover, a purchased BMW, frequent meals at high-end restaurants, stays at luxury hotels, and jewelry.
This case is the product of an extensive investigation by the FBI and is being prosecuted by Assistant United States Attorney Matthew D. Segal. The maximum statutory penalty for a violation of wire fraud is 20 years and a fine of the greater of $250,000 or twice the gain or loss from the offense. Any sentence will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The charges are only allegations and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Anyone who has invested money with Chris Jackson in the last six months is encouraged to contact the FBI at 916-481-9110.