18-year sentence for leader of one of state's largest ponzi schemes
Former mortgage banker Frederick Berg was sentenced Thursday to 18 years in prison for ripping off $100 million from investors during one of the biggest ponzi schemes in Washington history.
Berg, founder of "Meridian Mortgage Investment Funds," diverted tens of millions of dollars for his own use and used the cash to support a lavish lifestyle that included a Mercer Island mansion, a couple of yachts and two private jets.
"The greed in this case is stunning," said U.S. Attorney Jenny A. Durkan, in a press release. "This defendant stole and squandered the dreams of hundreds: dreams of retirement, dreams of homeownership, dreams of a college education for their children and grandchildren. While we could not restore those dreams, today he was held accountable for his acts."
Michael Nance, Berg's attorney, said Berg had put his own money into the investments.
"(He) eventually had other investors come into it, it was legitimate, he was wildly successful in the early stages of this," Nance said. "And it was only later that he drifted into what was fraudulent."
Berg had pleaded guilty in August to charges of Wire Fraud, Money Laundering and Bankruptcy Fraud. The amount of money he will be required to pay back will be determined at a hearing in April.
Berg, founder of "Meridian Mortgage Investment Funds," diverted tens of millions of dollars for his own use and used the cash to support a lavish lifestyle that included a Mercer Island mansion, a couple of yachts and two private jets.
"The greed in this case is stunning," said U.S. Attorney Jenny A. Durkan, in a press release. "This defendant stole and squandered the dreams of hundreds: dreams of retirement, dreams of homeownership, dreams of a college education for their children and grandchildren. While we could not restore those dreams, today he was held accountable for his acts."
Michael Nance, Berg's attorney, said Berg had put his own money into the investments.
"(He) eventually had other investors come into it, it was legitimate, he was wildly successful in the early stages of this," Nance said. "And it was only later that he drifted into what was fraudulent."
Berg had pleaded guilty in August to charges of Wire Fraud, Money Laundering and Bankruptcy Fraud. The amount of money he will be required to pay back will be determined at a hearing in April.
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