Cedar Rapids, Iowa News, Sports, and Weather
Disgraced Iowa Businessman Faces Wire Fraud Charge
CEDAR RAPIDS, Iowa (AP) - A disgraced Cedar Rapids businessman is expected to plead guilty to wire fraud stemming from accusations that he misappropriated nearly $1 million in investors' funds.
Jeffrey Kinseth is scheduled to appear Thursday in federal court in Cedar Rapids.
The U.S. Commodity Futures Trading Commission alleged last year that Kinseth and his company, Virtual Vision, defrauded investors. In a settlement, he agreed to pay a $575,000 penalty and another $575,000 in restitution.
A plea agreement released Wednesday show that Kinseth has agreed to plead guilty to wire fraud under a deal with the U.S. Attorney's office.
The commission said that he took money from 11 investors in 2008 and 2009 promising to trade futures or foreign currency contracts, but mostly used it to pay back other investors or for personal items.