CBS Atlanta reports that A 42-year-old Atlanta man made an initial appearance Thursday before a United States Magistrate Judge after being indicted by a federal grand jury on charges of wire fraud and mail fraud arising from a $7 million Ponzi scheme.
According to United States Attorney Yates, from July 2004 through at least March 2008, Charles Michael Vaughn recruited at least 25 individuals to invest in a purported "hedge fund" operated by his company, "CM Vaughn, LLC," based in Atlanta.
Vaughn falsely represented to investors that his fund generated returns of 2 to 3.5% per month, and from 15% to as much as 50% per year. Vaughn never invested the funds given to him by his investors, and merely used their investments to pay his personal expenses and to repay earlier investors, according to reports…
http://www.cbsatlanta.com/story/15014260/atlanta-man-indicted-for-defrauding-investors-in-ponzi-scheme
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