A Henderson man is facing federal charges in Los Angeles in what authorities allege is a $15 million Ponzi scheme.
Gordon Driver, 54, was arrested in Las Vegas earlier this month on charges including mail and wire fraud in the investment scheme, the Los Angeles U.S. attorney’s office said in a news release.
He was released from custody and ordered to appear for arraignment Wednesday in Los Angeles.
According to the indictment, Driver falsely told investors he was producing earnings of 1 percent to 5 percent a week through a commodity futures trading program. In reality, his trading activity was unprofitable, causing him to lose nearly all the money he used to trade commodities.
Federal authorities think that Driver took in at least $15 million in the scheme and that his investors lost at least $9 million. He solicited investments through Nevada-based companies, including Axcess Automation LLC, and a hedge fund he called Axcess Fund LP.
Driver told his investors he never suffered a net trading loss over the course of any month, and he failed to disclose that he used some of their money for personal expenses and to pay earlier investors, prosecutors allege.
In addition to the fraud allegations, Driver is accused of lying to the U.S. Securities and Exchange Commission.
The criminal case is the result of a joint investigation by the FBI and the U.S. Postal Inspection Service in Los Angeles.