Two Men Arrested in Alleged Ponzi Scheme
Two California men were arrested by federal agents in connection with a $25-million Ponzi scheme that the men claimed was licensed by the International Monetary Fund and the U.S. Treasury, prosecutors said.
John C. Jeffers, 61, of Mentone and John Minderhout, 54, of Yucaipa lured investors with an investment program that they said used funds to finance humanitarian projects around the world, said the U.S. attorney’s office in Los Angeles.
Jeffers and Minderhout are named in 17 counts of wire fraud and 19 counts of mail fraud, each of which carries a maximum term of five years in prison. Jeffers also is charged with 10 counts of money laundering, which carry a 10-year penalty for each count.
A Ponzi scheme uses funds from new investors to make interest payments to older investors. Calls seeking comment from Jeffers and Minderhout at their office at J.C. Jeffers & Co. went through to a recorded message.
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