Mercer Island man gets 18 years for Ponzi scheme
Feb 9, 2012, 3:01 PM | Updated: 4:04 pm
A Mercer Island man has been sentenced to 18 years in prison for a massive Ponzi scheme and bankruptcy fraud that fed “his unadulterated greed.”
Frederick Berg, 49, stole more than $100 million in investor money meant for real estate and real estate contracts to live a luxurious lifestyle.
“The greed in this case is stunning,” said U.S. Attorney Jenny A. Durkan. “This defendant stole and squandered the dreams of hundreds: dreams of retirement, dreams of home ownership, dreams of a college education for their children and grandchildren. While we could not restore those dreams, today, he was held accountable for his acts.”
At sentencing, District Judge Richard A. Jones told Berg, founder of the Meridian Group of investment funds, that he had “reckless disregard for his victims…and had no moral compass.”
Between 2001 and 2009, Berg used more than $100 million from more than 800 investors to buy homes, cars, yachts and Lear jets. Among his many purchases, was a $5.5 million waterfront mansion on Mercer Island.
Berg was arrested in Los Angeles in October 2010 and later pleaded guilty. He will be ordered to pay restitution at a hearing in April.
