Geneva man charged in national fraud scheme
A Geneva man has been charged with mail fraud by federal prosecutors for his part in a scheme authorities said bilked more than $5 million from investors.
Roderick Rieman, 66, along with Michael Crook, 52, of Los Angeles, were indicted by a federal grand jury Wednesday, the U.S. Department of Justice said.
Prosecutors said the men conducted a scam between 2004 and August 2007 where they would enlist investors for a series of technology products that never came to fruition by misrepresenting investment returns and risks. The indictment alleges the two men misappropriated investment funds by making “Ponzi-type payments” to original investors.
The two men were operating companies called Z Touch Systems, Global Payment Solutions, Bluko Information and Smart Restaurant Solutions. The businesses dealt with creating interactive kiosks, prepaid debit cards and restaurant reservation software. Rieman also formerly operated Innovative Financial Services, an investment and insurance business in St. Charles, the federal prosecutor’s release stated.
More than 100 people invested in the companies, prosecutors said.
The men face a maximum sentence of 20 years in prison and a $250,000 fine for each count. They are both charged with 10 counts, authorities said.