More than a year ago, alleged Southern California con man Bruce Fred Friedman was arrested in France where he remains in custody today. Friedman has opposed extradition to the US and, although French courts have authorized extradition, the French government has not yet made a final decision.
A federal grand jury in Los Angeles indicted Friedman on 23 charges related to an alleged Ponzi scheme, as reported in the LA Times. An estimated $228 million was involved in the alleged Ponzi scheme, where Friedman is accused of misrepresenting his investment program to investors and using money from new investors to pay returns to earlier ones. On March 4, 2009, the Securities and Exchange Commission, filed a complaint and seized control of Friedman’s business, Diversified Lending Group, Inc. (“DLG”)
In addition to the SEC action, there are numerous civil lawsuits filed in Los Angeles Superior Court against insurance companies and broker dealers involved in the DLG investment program. Richard E. Donahoo of Donahoo & Associates was named plaintiffs’ liaison counsel in the case.
For more background on the DLG case, read this recent LA Times article.