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http://www.fox9.com/news/wife-charged-for-role-in-1-million-ponzi-scheme

 

 – The wife of a man accused of running a $1 million Ponzi scheme is now charged for her role in the scheme, according to the United States Attorney’s Office.

Alex Reaves Lundin, 25, is charged with conspiracy to commit mail fraud. Her husband, Jeremy Lundin already pleaded guilty to charges of mail fraud and money laundering.

In June, Fox 9 first reported details about the alleged scheme.

According to officials, Jeremy Lundin claimed to run “options trading” through his business Big Island Capital from December 2014 to May 2017. He promised investors exponential growth and received more than $1 million from 51 investors.

Instead of using the money for options trading, the Lundin couple spent the money on personal expenses including travel, luxury automobiles, a boat, jewelry and more.

Over the course of the operation, Jeremy Lundin created fake account statements, which falsely reported financial gains.

Investigators say Alex Lundin helped her husband carry out the scheme even after she found out he was not using the money for options trading.

Alex Lundin will make her first appearance at a later date. Her husband Jeremy will be sentenced on February 1.

 

BACKGROUND: Charges: Mound woman helped husband with $1 million Ponzi scheme

 

http://www.startribune.com/charges-mound-woman-helped-husband-with-1-million-ponzi-scheme/467223073/

 

Alex Lundin’s husband, Jeremy, pleaded guilty last year to crimes authorities say financed their lavish lifestyle.

A Mound woman whose husband pleaded guilty to bilking investors of more than $1 million has been charged for her role in a Ponzi scheme that funded their lavish lifestyle, federal prosecutors said Friday.

Authorities charged Alex Reaves Lundin, 25, with one felony count of conspiracy to commit mail fraud for her role in the scheme they say was orchestrated by her husband, Jeremy Lundin.

In September, Jeremy Lundin, 30, pleaded guilty in U.S. District Court to one count of mail fraud and one count of money laundering, both felonies, after a monthslong FBI and IRS investigation into his company, Big Island Capital, Acting U.S. Attorney Gregory Brooker said in a Friday news release. His sentencing date is Feb. 1.

Alex Lundin identified herself as the chief financial officer of Big Island Capital in her LinkedIn resume, authorities say.

According to his guilty plea, Jeremy Lundin admitted to working through a network of associates and friends to solicit at least 51 investors by promising “exponential growth through options trading,” then taking their money to finance personal trips, buy expensive jewelry and purchase a luxury boat.

From December 2014 to May 2017, Jeremy Lundin lured the victims into a false sense of security by misrepresenting the contents of his brokerage account, where Big Island’s assets were meant to be held for safekeeping, according to the criminal complaint. He once claimed the firm’s capital was $730,000 when, in reality, Lundin had not yet even opened the brokerage account.

As part of the scheme, he provided the victim investors with written materials claiming that the goal of Big Island Capital was to “generate profits with options trading.” Although he could not “guarantee” an exact percent, he would “shoot for” returns of between 40 and 80 percent, according to federal prosecutors.

After Alex Lundin learned that her husband was not following through on his promises to investors, she assisted him with the scheme by soliciting new investors and allegedly lying to other investors, telling them that their money was safe. She allegedly did this despite knowing that investor money had gone toward their personal expenses, federal prosecutors said.

In a June interview with the Star Tribune, she denied having anything to do with the company.

 

USA DOJ ANNOUNCEMENT: Wife Of Big Island Capital Fraudster Charged For Her Role In Million Dollar Ponzi Scheme

 

Department of Justice
U.S. Attorney’s Office
District of Minnesota

Acting United States Attorney Gregory G. Brooker today announced the filing of a felony information charging ALEX REAVES LUNDIN, 25, with conspiracy for her role in a $1 million Ponzi scheme orchestrated by her husband, Jeremy Lundin. LUNDIN will make her initial appearance in U.S. District Court at a later date. Jeremy Lundin, who has already pled guilty to charges of mail fraud and money laundering for his role in orchestrating the scheme, is scheduled to be sentenced on February 1, 2018.

According to the information, from approximately December 2014 through May 2017, Jeremy Lundin claimed that he conducted “options trading” through his business Big Island Capital. He worked through a network of associates and friends to solicit investors by promising to generate exponential growth through options trading, and obtained more than $1 million from 51 investors over a roughly two-year period.  However, instead of using the funds for options trading, Jeremy Lundin and LUNDIN spent investors’ money to fund their lavish lifestyle.

According to the information, as part of the scheme, Jeremy Lundin provided investors with a “Welcome Packet,” consisting of an “Investment Advisory Agreement” and other materials describing his business. Through these materials, Jeremy Lundin claimed that Big Island Capital investments earned a 67 percent rate of return in 2013 and a 97.8 percent rate of return in 2014. In order to appear legitimate and promote his scheme, Jeremy Lundin also created phony account statements which commonly and falsely showed double-digit gains on a weekly or quarterly basis. Between May 2015 and May 2017, at least $992,000 in investor funds was deposited into Jeremy Lundin’s “Big Island Capital” bank account. During roughly the same time period, however, Jeremy Lundin transferred $933,950 from the business account directly into his and LUNDIN’s personal checking account. The couple then used the majority of those investor funds on their personal expenses including travel, luxury automobiles, a boat, jewelry, retail purchases, and more than $366,000 in credit card payments.

According to the information, after LUNDIN became aware that her husband was not conducting options trading as he promised investors, she continued to assist him in carrying out the scheme by, among other actions, soliciting new investors and drafting correspondence intended to lull current victim-investors into believing their money was safe, despite knowing that she and Jeremy Lundin had spent all of the investor funds on personal expenses.

This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS, Federal Bureau of Investigation, United States Postal Inspection Service, and Minnesota Department of Commerce Fraud Bureau.

 

Assistant United States Attorney Amber M. Brennan is prosecuting the case.

Defendant Information:

ALEX REAVES LUNDIN, 25

Mound, Minn.

Charges:

  • Conspiracy to commit mail fraud, 1 count

 

and more BACKGROUND: Big Island Capital Fraudster Pleads Guilty To Million Dollar Ponzi Scheme

Department of Justice
U.S. Attorney’s Office
District of Minnesota

Acting United States Attorney Gregory G. Brooker today announced the guilty plea of JEREMY RICHARD LUNDIN, 30, for operating a Ponzi scheme through which he stole more than $1 million from individual investors. LUNDIN, who was charged via a criminal information on September 1, 2017, pleaded guilty yesterday before Judge Wilhelmina M. Wright in U.S. District Court in Saint Paul, Minn. A sentencing date has not yet been scheduled.

 

“Jeremy Lundin’s friends and associates gave him hundreds of thousands of dollars based upon outright lies. Mr. Lundin spent their hard-earned money – in some cases, their life savings – to travel, shop, drive luxury cars, and otherwise fund a lifestyle that many of his victims will never enjoy,” said Assistant U.S. Attorney Amber Brennan. “Mr. Lundin has admitted his crime and he will now face the consequences of his criminal actions.”

 

“IRS Criminal Investigation is committed to help put an end to the criminal behavior of those who prey on investors for their personal financial gain”, stated Hubbard Burgess, IRS Criminal Investigation Special Agent in Charge of the St. Paul Field Office. “The guilty plea of Jeremy Lundin again emphasizes that we and our law enforcement partners will continue our aggressive pursuit of those who defraud and harm investors.”

 

“Postal Inspectors will continue to protect the integrity of the US Postal Service and aggressively investigate and prosecute those cases where the US Mails are used to defraud individuals of their hard-earned money and property,” said Denver Division INC Nicole Davis. “The U.S. Postal Inspection Service and its law enforcement partners play a critical role in protecting the American consumer from these types of fraudulent schemes.”

 

According to the defendant’s guilty plea, from approximately December 2014 until May 2017, LUNDINclaimed that he conducted “options trading” through his company Big Island Capital. LUNDIN worked through a network of associates and friends to solicit investors to invest with Big Island Capital by promising those potential investors exponential growth through options trading. LUNDIN solicited more than $1 million from at least 51 investors, but instead of using the funds for options trading, LUNDIN spent investors’ money to fund his and his wife’s lavish lifestyle.

 

According to the defendant’s guilty plea, as part of the scheme, LUNDIN provided victim investors with written materials relating to his purported investment strategy. Through these materials, LUNDIN claimed that the goal of Big Island Capital was to “generate profits with options trading” and that while he could not “guarantee” an exact percent, he would “shoot for” returns of between 40 percent and 80 percent. LUNDIN also entered into contract agreements with victim investors. These agreements, titled, “Big Island Capital Investment Advisory Agreement,” purported that the assets of Big Island’s account would be held for safekeeping in a brokerage account. LUNDIN regularly represented that the value of the account was several hundred thousand dollars. For example, “Welcome Packet” materials LUNDIN sent to a new victim investor on November 24, 2015, claimed that the firm’s capital was then $730,000 when, in reality, LUNDIN did not even open the brokerage account until December 21, 2015.

 

According to the defendant’s guilty plea, in order to appear legitimate and promote his scheme, LUNDINcreated phony account statements. He also provided victim investors with online access to fictitious quarterly statements and purportedly “up to date” information about the rate of growth and the market value of the accounts, which commonly and falsely showed double-digit gains. As part of the scheme, LUNDIN directed his victim investors to make their checks payable to “Big Island Capital,” he would then deposit those checks into a bank account he had established in the company’s name. Between May 2015 and May 2017, at least $992,000 was deposited into that account. During roughly the same time period, however, LUNDIN transferred $933,950 from the business account directly into his and his wife’s personal checking account. LUNDIN and his wife used the majority of those investor funds on personal expenses including travel, luxury automobiles, a boat, jewelry, retail purchases, and more than $366,000 in credit card payments.

 

This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS, Federal Bureau of Investigation, United States Postal Inspection Service, and Minnesota Department of Commerce Fraud Bureau.

 

Assistant United States Attorney Amber M. Brennan is prosecuting the case.

 

 

Defendant Information:

 

JEREMY RICHARD LUNDIN, 30

Mound, Minn.

 

Convicted:

  • Mail fraud, 1 count
  • Money laundering – transaction involving fraud proceeds, 1 count