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AG: Ponzi Scheme By Grosse Pointe Man Bilked Seniors Out Of $800K

LANSING (WWJ) - Michigan's attorney general has announced charges against a Detroit area insurance agent in an alleged Ponzi scheme targeting senior citizens.

AG Bill Schuette's office accuses 51-year old Paul Garceau of Grosse Pointe of running a scam that bilked investors out of $800,000 over seven years.

According to investigators, who began looking into Garceau's business — Apex Wealth Management in Harrison Township — following a complaint back in 2014, Garceau convinced his victims to withdraw money from legitimate investments, promising he'd reinvest their funds in more lucrative opportunities with higher returns.

Instead, Garceau allegedly deposited the funds into his company's account, spending the money on himself or to further his alleged Ponzi scheme.

Garceau was arraigned Friday on the following: one count of conducting a criminal enterprise, a 20-year felony; one count of embezzlement by an agent $100,000 or more, a 20-year felony; five counts of embezzlement by an agent $50,000 or more but less than $100,000, a 15-year felony; and one count of embezzlement by an agent of $20,000 or more but less than $50,000, a 10-year felony.

The term Ponzi scheme is used to describe crimes similar to those of Charles Ponzi, who duped thousands of New England residents into investing in a postage stamp speculation scheme back in the 1920s.

"Garceau's actions were illegal and unacceptable," said Department of Insurance and Financial Services (DIFS) Director Patrick McPharlin. "The staff of the Department of Insurance and Financial Services, together with the Department of Attorney General, did an outstanding job of uncovering these schemes that were targeting the elderly."

Bond was set at $50,000, cash/surety, 10 percent. Garceau's next court appearance was scheduled for Wednesday, May 31.

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