Alleged Ponzi scheme traced to Carpinteria resident

By ERIC LINDBERG — Feb. 10, 2010

A Carpinteria man turned himself into federal agents late last week after being charged with running a Ponzi scheme that collected at least $12 million from victims throughout the country.

Peter Jerald Frommer, 34, a former Malibu resident who recently relocated to Carpinteria, was named in a 17-count indictment from a federal grand jury accusing him of two counts of mail fraud, seven counts of wire fraud, five counts of money laundering and three counts of failing to file federal income tax returns, according to the U.S. District Attorney’s Office.

Frommer allegedly operated an investment scheme under the names “Cap Exchange” and “Cap X” that purported to purchase surplus property from defunct companies for resale.

Frommer reportedly told his victims he would buy distressed assets and share profits from subsequent sales. Between January 2004 and August 2006, he allegedly solicited $12 million from investors by promising returns of 8 to 15 percent within short timeframes, federal officials said.

More than 50 victims throughout the United States fell for the alleged scheme, according to the indictment, which alleges that Frommer used the money to maintain a lavish lifestyle while making Ponzi payments and falsifying account statements to cover up his misdeeds.

If convicted of the 17 counts, he faces a maximum sentence of 233 years in prison. A spokesman for the U.S. District Attorney’s Office noted the Frommer was also involved in a recent case involving fraudulent checks out of Aspen, Colo.

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More on his illegal activities from 2 years ago: : 2/10/2010

http://www.aspentimes.com/article/20070203/NEWS/102030056

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Oops, I mean 3 years ago : 2/10/2010

in 2007

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he didn't kill anyone! : 2/10/2010

give him a year suspended plus probation and call it a day. Better yet! let's play the endless court ponzi scheme on the taxpayer and let the lawyers talk it over for a couple of months, then just give him probation!!! Cha-ching baby!!!

Boycott Boy

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Other Ponzi Schemes : 2/12/2010

When are they going to indict some of these guys... like Douglas L Swenson and Charles Hassard of DBSI in Boise who defrauded more than 12,000 mostly retired investors providing inflated appraisals, robbing Peter to Pay Paul to make their public books look profitable, taking the investor reserves in a property and doing what they will.

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