Authorities arrested a man today wanted since 2003 for his role in a Ponzi Scheme that fleeced investors out of at least $80 million. Marlyn "Milt" Hinders, 72, was arrested at Houston airport in June after being rumored to have been living in Mexico since 2004. A recent tip is rumored to have led to his arrest.
Hinders, along with eight other individuals, was charged in an 83-count indictment on counts of conspiracy, obstruction, mail fraud, wire fraud, money laundering, and several other charges. The other eight co-conspirators were all arrested in California and Costa Rica in 2005, and have been or are being prosecuted for those charges.
Authorities alleged that the nine individuals operated the Genesis Fund, which from May 1998 to June 2002 took in over $80,000,000 in investor funds. Investors were told that their funds would be pooled and invested as part of a sophisticated foreign currency operation. According to the indictment, the Genesis Fund received investment funds using offshore bank accounts to avoid scrutiny by the Internal Revenue Service, and kept no financial statements. Additionally, the Fund's management offices were moved from California to Costa Rica in April 2000 to further avoid regulatory oversight.
In June 2002, shortly after advertising that the Fund's value exceeded $1.3 billion, the Genesis Fund suspended redemptions and investing operations, and told investors that a new investing operation would begin soon. An indictment shortly followed.
Hinders is being held in Los Angeles, where he is scheduled to stand trial on August 9th.