Financier, Five Others Indicted in Ponzi Scheme

Richard A. Parker, the Laguna Niguel financier who once offered to fund construction of the world’s tallest building, has been indicted by a federal grand jury along with his son and four other colleagues after investigators accused them of wire and mail fraud, money laundering and conspiracy.

Federal agents on Thursday arrested four officers of Parker’s firm--Morgan, Weinstein & Co.-- and issued warrants for a Canadian resident they claim participated in a long-running and sophisticated Ponzi scheme. Parker, 78, was arrested by agents last week when they heard he was considering leaving for Europe. All remained in custody Thursday, according to the U.S. attorney’s office.

In papers filed in U.S. District Court in Santa Ana, authorities claim the group bilked more than a dozen firms worldwide out of $17 million. In all, the indictment includes 33 counts of illegal activity. Among the victims listed are development, airline, hotel, shipping and computer firms.

Authorities say Parker’s firm promised to loan the corporations more than $11 billion. The company didn’t deliver the loans but collected retainer fees.

Investigators allege the borrowers were enticed by claims that Morgan, Weinstein held more than $30 billion in assets--claims that authorities say are false.

The six indicted are:

Parker, the chairman of Morgan, Weinstein & Co.; Richard A. Parker II, 54, of San Juan Capistrano, president of Morgan, Weinstein; David A. Feldman, 62, of Fallbrook, a senior analyst; Donald L. Allen, 44, of San Diego, an analyst; Daisy M. Burlingame, 60, of Grass Valley, a new projects manager; and Wayne Chan, 51, of Vancouver, British Columbia, who allegedly acted as a reference for Morgan, Weinstein.

Parker’s family say the elder Parker and his son are innocent. Jan L. Handzlik, Feldman’s lawyer, said his client denies the charges. Other lawyers could not be reached.

According to the indictment, a borrower was typically required to pay 1% of the loan amount as a retainer but frequently didn’t get it back.