Southland Man Faces 25 Years For $6M Ponzi Scheme

SANTA ANA (AP) — A Southern California investment adviser has pleaded guilty to securities fraud for bilking elderly residents in a $6 million Ponzi scheme.

Federal prosecutors in Orange County say 58-year-old Richard Nickles is facing a 25-year prison term when he’s sentenced Aug. 8.

The owner of Santa Ana’s Innovative Advisory Services pleaded guilty Wednesday to a count of mail fraud and a count of securities fraud, both of them felonies.

Nickles placed advertisements in Orange and Los Angeles newspapers promising safe investments for a minimum $50,000. But prosecutors say he took investor money and paid off prior customers or traded in securities not authorized by the investors.

Investigators estimate victims lost more than $6 million.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)


Leave a Reply

Fill in your details below or click an icon to log in:

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More From CBS Los Angeles

KNX 1070 Newsradio

Listen Live