RSS Feeds

Va. man pleads guilty to bilking investors

Thursday - 4/17/2014, 1:22pm  ET

HARRISONBURG, Va. (AP) -- A Harrisonburg man has pleaded guilty to charges of bilking more than $1 million from investors.

Paul Souder pleaded guilty on Wednesday to mail fraud and wire fraud in U.S. District Court in Harrisonburg.

U.S. Attorney Timothy J. Heaphy said Thursday in a news release that Souder used clients' money to pay his bills and buy new vehicles.

According to a statement of facts, Souder promised investors a return of up to 10 percent per quarter through online trading. He obtained money from at least 18 investors through a fraudulent promissory note program. He didn't report any losses incurred and used money obtained from new investors to pay profits to earlier investors.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.