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
Business Insider Emails & Alerts
Site highlights each day to your inbox.