Cedar Rapids Man Pleads Guilty to Wire Fraud
CEDAR RAPIDS, Iowa (AP) - A Cedar Rapids man has pleaded guilty to wire fraud after admitting he defrauded investors out of hundreds of thousands of dollars in a Ponzi scheme.
Jeffrey J. Kinseth entered the guilty plea Thursday afternoon during an appearance in federal court in Cedar Rapids. He was released on bond.
Under a plea agreement, Kinseth acknowledged that he used his company, Virtual Vision, to solicit and accept money from 11 investors in 2008 and 2009.
He promised he would trade futures or foreign currency contracts and bring "substantial returns." Instead, he used most of their money to pay back other investors and for other uses, while suffering losses in the investments he did make. To cover up his fraud, he issued phony account statements telling investors their money was growing.
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