April 3, 2002 at 12:00 AM EST - Updated June 29 at 8:00 PM
CLEVELAND (AP) - A securities dealer has been charged with illegally diverting a "substantial" part of the $41 million invested by his clients, federal prosecutors said Tuesday.
John R. Rodeman, 51, of suburban Medina, was charged with conspiracy to commit securities fraud, mail fraud and wire fraud. He also was charged with mail fraud, securities fraud and filing a false tax return.
U.S. Attorney Emily M. Sweeney said Rodeman, a registered securities salesman working in Akron, used investor funds to pay purported investment interest, to repay clients who complained and to buy a house.
Rodeman allegedly lied to investors about how their money would be invested and used most of it to advance his apparent scheme, Sweeney said.
The conspiracy and mail fraud counts carry possible five-year prison terms, the securities fraud count carries a possible 10-year term and the tax charge is punishable by up to three years in prison.
Rodeman could not be reached for comment. A message was left at a phone listed under his name in Medina.
(Copyright 2002 by The Associated Press. All Rights Reserved.)