Wednesday, Oct. 24, 2012 | 4:18 p.m.
A Henderson man who authorities said conned investors out of millions of dollars through a Ponzi scheme was to be arraigned on federal charges Wednesday afternoon in Los Angeles.
Gordon Driver, 54, was arrested Oct. 9 in Nevada. He faces two counts of mail fraud, nine counts of wire fraud, two counts of commodity pool operator fraud and three counts of making false statements to the Securities and Exchange Commission, according to Thom Mrozek, a spokesman for the U.S. Attorney’s central California district.
Driver allegedly lied to investors about a commodity futures trading program. Investigators believe he initially received at least $15 million from investors through companies like Axcess Automation LLC and a hedge fund called Axcess Fund LP.
Authorities said he told investors he was producing earnings of 1 percent to 5 percent per week through trades involving e-Mini S&P 500 futures contracts, when in reality, he nearly lost all the money. He also allegedly failed to tell clients that he used their money to pay personal expenses and make Ponzi payments to other investors.
Investigators believe that investors collectively lost at least $9 million as a result of Driver’s scheme.
In addition, Mrozek says Driver faces charges for allegedly making false statements while under oath during a 2009 Securities and Exchange Commission investigation involving two of his companies.
If found guilty on all charges, Driver could face a sentence of up to 275 years in federal prison.