A federal Grand Jury sitting in Chattanooga has indicted Luis H. Rivas on 19 counts stemming from an alleged Ponzi scheme he ran within the last year out of offices in Chattanooga and three other states.
The indictment charges Mr. Rivas of wire fraud, money laundering, criminal monetary transactions and bankruptcy fraud.
According to the indictment, he falsely represented himself as a foreign currency trader with eight years experience swindling approximately $31 million from investors out of five offices in Chattanooga, Knoxville, Tulsa, Okla., Panama City, Fla., and Spartanburg, S.C.
He misapplied investor funds in order to buy various personal items for himself and others, including houses, cars, furs, jewelry, limousine service, clothing, home improvements and furnishing, hotel suites and cash for “shopping sprees,” the indictment states.
Mr. Rivas would “falsely deny when asked that he had a felony fraud conviction in order to pacify investors concerned that they had not received their promised returns,” the indictment states.
Mr. Rivas also is being prosecuted in U.S. District Court in South Carolina where he faces federal mail, wire and securities fraud charges.
He pleaded not guilty at his arraignment in Greenville, S.C. earlier this month.
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