Raleigh man facing charges in connection with Ponzi scheme
Posted March 16, 2010 11:48 p.m. EDT
Updated March 17, 2010 12:50 a.m. EDT
Raleigh, N.C. — 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.