SANTA ANA (CBS) — A father and son have been indicted in a mail-fraud scheme that led more than 300 investors in their Costa Mesa businesses to lose $20 million.

A federal grand jury indicted Robert Louis Carver, 56, formerly of Irvine, and his son, Robert Louis Carver Jr., 36, formerly of Mission Viejo, on 14 counts of mail fraud.

The indictment alleges that the Carvers ran the fraudulent scheme four about four years, starting in April 2004, through several businesses they operated in Costa Mesa, including Brookstone Capital, Brookstone Biotech Ventures II and Lincoln Funds International.

The indictment also accuses the duo of claiming Lincoln Funds International was incorporated in 1996 and had offices in London, New York, Geneva, Los Angeles, Hong Kong, Singapore and Dubai. The father-son team created the business in 2006 and had just the one office in Costa Mesa.

The elder Carver was also accused of failing to tell investors of his prior criminal history and state administrative orders which barred him from holding any financial broker or advisor positions.

The Carvers also failed to file taxes for the companies and misappropriated investments, according to the indictment.

(©2011 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Wire services contributed to this report.)

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