Mail scheme led to $400,000 in stock broker fraud

St. Louis, MOA Missouri man has pleaded guilty to charges that he perpetrated mail-based stock broker fraud that successfully conned investors out of more than $400,000 according to a report from Acting U.S. Attorney Michael Reap.

span itemprop="image" itemscope itemtype="https://schema.org/ImageObject" style="display:block">St. Peters-based broker Kenneth G. Neely admitted to creating a fictional real estate investment trust called the St. Louis Investment Club (StLIC), going so far as to fake account statements and using the money earned to pay off other investors while living a lavish lifestyle.

Though employed at two separate investment firms over the nine years in which he operated the Ponzi scheme, Neely convinced his clients to invest in the StLIC by making checks payable directly to himself or his wife.

The Missouri government was alerted to the scheme by Neely's most recent employer, eventually issuing a cease and desist order before indicting him on one felony count of mail fraud in August.

If convicted, the 56-year-old could potentially face up to 20 years in prison and $250,000 in fines in addition to victim restitution.