Feds charge Lakeville man in $80M Ponzi scheme
Federal prosecutors have charged a Lakeville man with operating a Ponzi scheme they say resulted in a total estimated loss of $79.5 million for 17 lenders.
Corey N. Johnston, 40, is charged with one count of bank fraud and one count of filing a false tax return. Prosecutors say between 2005 and 2009, he engineered a scheme that involved overselling participation in large commercial and personal loans.
Prosecutors say he then used proceeds from loan repayments to repay other loans and perpetuate the scheme. He also allegedly diverted some of the fraud proceeds for his personal use and to family members.
The case was investigated by the FBI, the IRS and the Federal Deposit Insurance Corporation.
(Copyright 2010 by The Associated Press. All Rights Reserved.)
Create a More Connected Minnesota
MPR News is your trusted resource for the news you need. With your support, MPR News brings accessible, courageous journalism and authentic conversation to everyone - free of paywalls and barriers. Your gift makes a difference.