A federal indictment against a Genoa man alleges he committed one count of wire fraud and 48 counts of money laundering related to a Ponzi scheme.
The charges were filed last week against Terrance Osberger, 48, said Steven Dettelbach, U.S. Attorney for the Northern District of Ohio.
According to the indictment, the allegations stem from when Osberger owned and operated Eagle Trades, Ltd. – described as a self-styled high-yield investment program – between February 2008 and November 2010.
The government is alleging he operated a website, www.eagletrades.net, to entice investors with the promise of extremely high returns on their investments. The indictment contends he promised a return of 1,100 percent over the course of 190 days in one case.
Other allegations in the indictment:
• Osberger misused investor funds for his own personal use and misused investor proceeds to repay earlier investors who were redeeming their shares in what is known as a Ponzi scheme. The scheme involved transfers of nearly $1.8 million.
• Osberger listed Eagle as a subsidiary of Falcon Financial Group Limited, with addresses in Belize and the Commonwealth of Dominica and he utilized Aurum Capital Holdings, which maintained several offshore bank accounts during the scheme.
The investigating agency in the case is the Internal Revenue Service in Toledo and the case is being handled by Assistant US Attorney Joseph Wilson.
Osberger was also the subject of a complaint filed March 2011 in Massachusetts when the Secretary of the Commonwealth office alleged he violated securities regulations there.
According to the complaint, in March 2009 Osberger “traveled from Ohio to Massachusetts for the purpose of soliciting investments in Eagle Trades. Ltd…. Following a meeting held in Brockton on March 29, 2009, at which Osberger described the benefits of investing in Eagle Trades USA, at least three Massachusetts residents invested a total of $153,500 with Eagle Trades USA through Osberger. However, Eagle Trades may owe all its investors as much as $1,694,915.25”
Osberger’s firms were not registered for business in the commonwealth, according to the complaint.