Menomonee Falls man settles in Ponzi scheme case
MILWAUKEE -- A man from Memomonee Falls accused of running a $2.1 million ponzi scheme will have to pay $843,000 through a settlement in a US District Court.
The Journal Sentinel says Micheal Enea neither confirmed nor denied his involvment in the scheme, in which he allegedly took money from investors by selling "sham" investments in credit card portfolios.
The Securities and Trade Commission filed a complaint saying that Ena used business owners and neighbors for the scheme, telling them there was little risk in the investments and that he would be putting in his money, as well.
The SEC says Enea never put money into it - and he even made fake reports to show investors what he was making.
According to the complaint, Enea used about $1.35 million to pay off other investors, and the rest went to paying for his mortgage, a hunting lodge, and other personal expenses.
Enea agreed to sell his home to pay for some of the settlement.