Bruce Fred Friedman, Los Angeles, California, was indicted on September 20, 2010, by a federal grand jury on 23-counts. Through his company, Diversified Lending Group, Friedman lured investors with promises of high returns from investments in distressed properties. In reality, Friedman used newer investor money to make payments to earlier investors, in a classic Ponzi scheme. Friedman collected as much as $228 million from hundreds of investors across the country. Losses are estimated to be approximately $190 million. Friedman was arrested in France and is in the process of being extradited to the United States.
Operation Broken Trust Ponzi Scheme Unraveled
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