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Raleigh man facing charges in connection with Ponzi scheme

Posted March 16, 2010
Updated March 17, 2010

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— A Raleigh man is facing state and federal charges after authorities say he ran an elaborate Ponzi scheme where he lured customers with false promises of quick and large profits.

Dennis Todd Hagemann, 41, was arrested last Wednesday and charged with two felony counts of securities fraud and one felony count of obtaining property by false pretense.

Authorities said he fraudulently solicited approximately $700,000 from at least nine people to trade in a foreign currency investment scheme through his hedge fund company, Yellowstone Partners Inc.

Hagemann allegedly promised investors between 100 and 300 percent profits from their investments.

“Folks, that’s just out and out scam territory. You ought to just grab your pocketbook and run,” Secretary of State Elaine Elaine Marshall said

Scott Spangler said he was friends with Hagemann. Spangler invested $60,000 of his money, then brought in friends and family to share in the profits. 

Securities investigators said Hagemann told investors, like Spangler, that he used a complicated series of money transfers – involving at least two banks and three companies – to invest their money but, instead, deposited it in his personal account.

Spangler said Tuesday that he checked Hagemann out before giving him money. He even introduced Hagemann to one of his friends from Texas, who has a hedge fund himself.

“I flew him up here, spent the whole day together, and he couldn't see anything wrong with what was going on,” Spangler said.

Spangler says he will see to it that everyone he introduced to Hagemann gets their money back.

“When everything checks out on top, and you still wind up in this situation, that is really sad,” he said.

Hagemann was released from the Wake County jail after posting a $250,000 secured bond.

The U.S. Commodity Futures Trading Commission announced Monday that federal charges will also be filed against Hagemann. The U.S. District Court has also frozen his assets.


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  • james27613 Mar 17, 2010

    With so many investment firms out there, why on earth give this creep a single $1 to invest?

    At the very least, ask the person you plan on investing with to show you their personal portfolio, if they do not own the stuff they are pushing you to invest in, time to walk away.

  • htomc42 Mar 17, 2010

    Perhaps, at a certain point, we should stop arresting these con artists, and let them perform their Darwinian task of separating utter fools from their money.

    When it becomes so ridiculously transparent that it isn't real, should it even be a crime?

  • hardwork919 Mar 17, 2010

    There is zero percent chance that ANYTHING is a guarantee especially when it comes to business. That number is even lower when you figure in a 300% return. Everybody (should) know that.

  • bobbythreesticks Mar 17, 2010

    Everything checked out? Come on, 100-300% returns? That doesn't check out! When are we all going to learn that you get what you pay for and that the fast track to riches is filled with pitt falls.

  • manofjustice Mar 17, 2010

    Secretary of State Elaine Elaine Marshall...such a beautiful name.

  • wildcat Mar 17, 2010

    10 years in prison will help him think on his wrongness to these people. He should also have to pay these people back.

  • St Ives Mar 17, 2010

    Of course he is a personable and nice guy. If he was not he would not be a great con artist. I used to work out with Stan Van etten one of the biggest con artist in this town. Wonderful guy, same can be siad for Scott Gray another one in this town who had a con going. What did he get? Weekends in jail.

  • kiediss Mar 17, 2010

    nanasix you know your stuff and you are totally right; i don't get why they'd let a co. go 3 yrs without filing their annual report. total red flag. According to the Sec of State's site FAQ's: When are LLCs annual reports due? According to G.S. 57C-2-23(c), LLC annual reports are due by April 15th of each year.

  • pappybigtuna1 Mar 17, 2010

    sounds like Elaine Marshall and her staff deserve bonuses. Watch the finger pointing start now. Let's see we are over worked, under staffed, she could be our next governor, one more to a long list of people wanting to serve other people. Next time maybe Purdue will take you on a cruise to Mexico for jobs for NC. I QUIT

  • aspenstreet1717 Mar 17, 2010

    I thought he worked for the Social Security admin. That's the biggest ponzi of them all!!