From the Associated Press:
LOS ANGELES — A West Covina man has been indicted on charges of operating a Ponzi scheme by advertising that his investments are connected to the federal economic stimulus program.
The FBI said in a statement Friday that 34-year-old Ruben Juan-Gonzalez is accused of defrauding about 160 investors out of $3.6 million.
In a federal grand jury indictment Thursday, Gonzalez is charged with conspiracy and multiple counts of mail fraud, wire fraud and money laundering.
It says Gonzalez claimed in magazine advertisements that a program connected to the 2009 economic stimulus would invest money with returns of 60 percent or more.
But the indictment alleges very little of the money was invested, and Gonzalez used much of it on personal expenses including the lease of a luxury Mercedes-Benz.