More charges filed against Raleigh investment adviser
Posted March 22, 2010
Raleigh, N.C. — A Raleigh man already facing state and federal charges in connection with an alleged Ponzi scheme was charged Monday with 54 counts of fraud, authorities said.
Agents with the North Carolina Secretary of State's Office arrested Dennis Todd Hagemann, 41, on charges of felony securities fraud and obtaining property by false pretense. He was being held Monday in the Wake County jail under a $1 million secured bond.
Hagemann was initially arrested March 10 on two felony counts of securities fraud and one felony count of obtaining property by false pretense. He posted a $250,000 bond on those charges.
Authorities said he solicited about $700,000 from at least nine people to trade in a foreign currency investment scheme through his hedge fund company, Yellowstone Partners Inc. He promised investors between 100 and 300 percent profits, but investigators said he deposited their funds in his personal account and used new investments to pay off older investors.
The new charges stem from continued investigation of Yellowstone Partners and Hagemann's activities, authorities said.
"Our investigators have continued to develop this case as more information from more victims comes in,” Secretary of State Elaine Marshall said in a statement. “We believe Mr. Hagemann used foreign currency trading as his sales pitch, but then used investors’ money to pay other investors in what essentially became a Ponzi scheme.”
The U.S. Commodity Futures Trading Commission has said that federal charges will also be filed against Hagemann. A federal judge has frozen his assets.