Grand jury indicts Folsom man in $13 million investment scheme

The Associated Press

Article Launched: 03/13/2008 05:28:21 PM PDT
SACRAMENTO—Federal prosecutors say a Folsom man used money from a $13 million investment scam to buy a luxury home, boat and exotic sports car.A federal grand jury in Sacramento on Thursday indicted 44-year-old Stefan A. Wilson on 31 counts of fraud, money laundering and tax evasion.

An attorney for Wilson, who is in custody, did not immediately return a telephone message.

The indictment says Wilson ran an investment scheme through his CIC Investment Fund, promising extraordinary returns.

It alleges he urged clients to refinance their homes to raise money for their investments.

Prosecutors say Wilson lost about half the investors’ money in the stock market. He used the rest to pay investors as a way to give the appearance that they were making money.

He also used that money to buy luxury goods for himself. The federal complaint says Wilson made a $400,000 deposit on a home in the suburb east of the state capital, used $118,000 as a down payment on a Lamborghini, a $90,000 deposit on a boat and bought a $25,000 diamond ring.

The government is trying to seize the property.

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