OMAHA, Neb. (AP) — Three Omaha men have been sent to federal prison for operating what prosecutors say was a Ponzi scheme that cost victims $4 million.
The Omaha World-Herald reports that Jonathan Arrington, Michael Kratville and Michael Welke were sentenced on Thursday in U.S. District Court in Omaha. All three were convicted of wire fraud.
Arrington was given five years, Kratville was given four years and Welke three years.
Prosecutors say the three operated two companies guaranteeing large returns and low risk to investors in commodities and foreign currencies when the companies actually were hiding their losses. Authorities said the men used more than $700,000 to pay themselves and use toward golf club memberships, travel and dining.
Prosecutors say the scheme ran from 2005 through 2008.
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