IRVINE : Man Arrested in Investment Scheme

An Irvine man has been arrested for allegedly pocketing $83,000 that a neighbor gave him to invest in mutual funds.

Police said Friday that they are investigating whether John Harvey Rhynerson, 40, bilked as many as 10 victims out of more than $200,000 that he said he was investing.

Irvine police and U.S. postal inspectors arrested Rhynerson at his Irvine home Thursday on suspicion of grand theft. He was arraigned Friday and released on his own recognizance.

Police said that Rhynerson took the $83,000 from a neighbor in 1992, saying he was investing the money in high-yielding mutual funds.

For a while, Rhynerson sent the neighbor investment statements and provided him with occasional interest payments, said Police Sgt. Dwight Henninger.

When the payments stopped, the neighbor became suspicious and confronted Rhynerson, who could not account for the money, Henninger said.

Police believe there were other victims of the scam because Rhynerson told his neighbor that the $83,000 would be placed in a larger investment pool.