A federal grand jury has charged former Mormon bishop Julius C. Blackwelder with running a ponzi scheme that allegedly bilked investors out of $400,000.
According to a release from The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), Blackwleder, 59, supposedly told investors he using a line of credit from Bank of America, a recipient of TARP funds, to finance a fund called “Friend’s Investment Group.”
Instead, Blackwelder allegedly “used investors’ money to pay his own expenses, which included repaying earlier investors in the scheme, building a waterfront home in Stratford, and repaying personal bank loans,” including the line of credit from BofA.
Blackwelder, formerly a Bridgeport resident and now residing in Utah, is charged with with nine counts of money laundering and mail and wire fraud in connection with the alleged investor fraud scheme.
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