Meridian Mortgage Founder Cops To $100M Fraud

Law360, New York (August 3, 2011, 2:01 PM EDT) -- The bankrupt founder of defunct investment company Meridian Mortgage pled guilty in a Washington state federal court on Tuesday, admitting he stole $100 million in an investment fraud scheme.

Frederick Darren Berg, 49, copped to counts of wire fraud, money laundering and bankruptcy fraud. According to prosecutors, he duped more than 1,000 investors into thinking his real estate funds generated profits through property sales — when, in fact, he used the money to pay off earlier investors and buy a mansion, jets and luxury cars....
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