A Mormon Bishop Stiffed Investors Of $400,000 In TARP Ponzi Scheme

book of mormon

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.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.