NASHVILLE — Federal prosecutors in Nashville say two former executives of an investment firm have been indicted in an $18 million Ponzi scheme.

According to a news release Thursday, Terry Fretz, former CEO of Hanover Corp., and Robert Haley, former CFO, were indicted for a scheme perpetrated from approximately January 2004 to August 2006.

Kretz, 56, of Lebanon, Tenn., and Haley, 50, of Gallatin were both charged with one count of conspiracy, one count of securities fraud, one count of wire fraud, four counts of mail fraud and seven counts of money laundering.

According to the indictment, Kretz and Haley misrepresented the finances of Hanover and how client funds would be invested.