Las Vegan pleads not guilty

Kim Smith

Tuesday, Oct. 19, 1999 | 10:46 a.m.

A 50-year-old Las Vegas resident suspected of bilking more than 300 investors out of $15 million pleaded not guilty in federal court Monday.

Jerry Womack was arrested by the FBI Friday after agents from Los Angeles and Las Vegas executed a search warrant at his Campbell Road home, Special Agent Kevin Caudle, FBI spokesman, said.

Caudle said an investigation revealed that at least 350 people invested their money in Womack's Iris Limited Liability Corp., believing that Womack was investing in short-term stocks.

However, Caudle said, Womack never invested the money and instead was using it for his own personal gain. What money the investors did receive came from other investors.

The scam is what is known as a ponzi scheme, Caudle said.

Womack was arrested and charged with one count of wire fraud after he reportedly transferred $30,000 from a Las Vegas client into his personal bank account, Caudle said.

Caudle said authorities don't believe any of the $15 million is left.

Most of Womack's investors live in Los Angeles, Caudle said.

Magistrate Judge Roger L. Hunt ordered Womack detained following Monday's initial appearance, Caudle said.