St. Louis (KSDK) - A local securities trader pleaded guilty to fraud charges involving an investment scheme valued at approximately $2.5 million.
According to court documents Grahame E. Rhodes, 61, was a self-employed futures securities trader who solicited clients, family members, neighbors, and friends, by promising them high rates of return on their investments.
Rhodes tried to return some money to investors representing it to be profits, but it was actually money invested by new clients.
When questioned by investors, Rhodes told them he had invested their money when he had not, and delayed requests for withdrawal of their investments by creating false excuses to justify the delays.
Wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000.
Sentencing has been set for March 15, 2013.