Investment adviser's dad among those who put money into alleged Ponzi scheme
A Raleigh investment adviser appeared in federal court in shackles Thursday on charges he bilked people out of more than $15 million in an elaborate Ponzi scheme.
Stephen Condon Peters, 44, was indicted Tuesday one one count each of investment adviser fraud and fraud in the sale of unregistered securities, nine counts of wire fraud and four counts of engaging in monetary transactions in criminally derived property. He also was charged with corruptly endeavoring to influence a federal agency.
It's unclear when he was arrested, but Peters was shackled and his hands cuffed behind his back as he and people facing drug and weapons charges in separate cases appeared before U.S. Magistrate Judge Robert Numbers II.
Authorities allege that Peters, who owns VisionQuest Wealth Management, promised investors returns of 8 to 9 percent a year on low-risk investments. Some turned over their retirement accounts to him.
Prosecutors say he diverted money for his own personal use and business expenses, including paying off early investors, all the while claiming he wasn't taking any fees on investments.
Even before the FBI and U.S. Department of the Treasury agents raided VisionQuest offices and Peters' Raleigh home in July, authorities said he tried to scrub his computers of potentially incriminating evidence and lied about shuffling money among companies he controlled.
A federal judge froze Peters' assets in September, and federal authorities plan to seize an array of property to help repay victims. The list includes a horse farm near Lake Wheeler, three horses, saddles and horse tack, farm equipment, a cliffside vacation home in Costa Rica known as "The House of the Beloved Princess," property in Jacksonville and Wilkes County, a Cadillac Escalade and other vehicles, a dozen firearms, five watches and assorted jewelry, artwork and any cash in five bank accounts.
Numbers released Peters on his own recognizance pending his trial, but Peters had to surrender his passport and was ordered not to leave North Carolina. The judge also barred Peters from contacting any VisionQuest investors, other than his father.
Peters and his lawyer declined to comment as they walked out of the federal courthouse.
Each of the 16 charges Peters faces carries a maximum prison sentence of five to 20 years and a $250,000 fine
