LOS ANGELES  (AP) — A Los Angeles financial adviser charged with defrauding investors in a $228 million Ponzi scheme has been arrested in France.

The FBI says 60-year-old Bruce Fred Friedman, who fled the country before he was charged last month with mail and wire fraud, promised to invest in rental properties but instead diverted the money to himself, family and friends to pay for a lavish lifestyle.

FBI spokeswoman Laura Eimiller says Friedman, who lives in suburban Sherman Oaks, was arrested on Sept. 13 utside his hotel in Cannes. She said Tuesday that extradition could take months.

The Los Angeles Times says the Securities and Exchange Commission shut down Friedman’s Diversified Lending Group last year and filed civil charges accusing him of operating a massive Ponzi scheme since 2004.

(© Copyright 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

Comments (5)
  1. ReginaM says:

    Even with all of the publicity about Ponzi schemes, it doesn’t seem that people are getting any smarter about looking for the warning signals.

    1. WASP says:

      Madoff, Rothstein, Friedman …I think we both know what the warning signs are, Regina

  2. mrviking says:

    I thought they caught and put Madoff in prison ? Ha….

  3. Chuck says:

    When is the shyster coming back from France? When will they arrest his partner in crime girlfriend, Karen O’Callaghan. We hear she is hiding out in Des Moines, Iowa…

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