GRAND RAPIDS (AP) – An insurance salesman has been convicted in a $46 million scheme involving more than 800 families and unsophisticated elderly investors, federal authorities said.

David McQueen, of Byron Center, was convicted Friday by a federal court jury in Grand Rapids of six counts of mail fraud, six counts of money laundering and three tax counts stemming from a Ponzi scheme that spanned three years.

“To perpetuate his fraud, McQueen sent out monthly or quarterly account statements communicating to investors that their investments were safe and growing,” the U.S. Attorney’s office in Western Michigan said in a release. “Investors relied on those account statements and believed they accurately depicted the balance in their accounts.”

Authorities said McQueen was making “an adequate living in sales” when in 2006 he used borrowed funds to invest in Multiple Return Transactions. McQueen received returns of at least 10 percent for a few months and then created his own company, Accelerated Income Group. Investors in his company were promised returns of 5 percent.

McQueen used the promised 10 percent returns from Multiple Return Transactions to make the 5 percent returns his company promised. He then could keep 5 percent for himself, according to the federal release.

Multiple Return Transactions stopped making payments to McQueen in 2007. But investors in his Accelerated Income Group still were told “their money was safe and growing,” authorities said.

Funds from new investors were then used to make the promised 5 percent interest payments.

“Despite knowing that he had absolutely no revenue coming in, McQueen took $100,000 of investor money per month tax free for his own personal use and enjoyment,” according to the release.

“In July and August 2009, McQueen sent out his final account statements showing that investors had tens of millions of dollars safe and growing in their separate accounts. Those statements concealed the truth – that McQueen had nearly run out of money.”

He faces up to 20 years in prison on each fraud and money laundering count.

TM and © Copyright 2014 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2014 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.


Leave a Reply

Please log in using one of these methods to post your comment:

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

More From CBS Detroit

Best Cooking Classes In DetroitLearn how to whip up some wonderful dishes while having fun!
5 Bucket List Items To Cross Off In DetroitThe “must-do” items for anyone making a trip to Detroit.

Watch & Listen LIVE