Former Saginaw Resident Facing Felony Charges
Joel Wilson, a 31-year-old former resident of Saginaw, MI, is facing multiple felony charges in connection with a “Ponzi scheme” that the Attorney General’s office claims has resulted in approximately $8.5 million in missing investor funds. According to a recent press release, Wilson is being extradited back to the U.S. to face charges after more than a year in Germany.
In 2009, Joel Wilson began operating an investment company called The Diversified Group, which had multiple locations throughout Bay City, MI. According to the investigation, Wilson would tell investors that their money would be used to purchase distressed properties in the Saginaw and Bay City areas. The properties were to be fully refurbished and sold for profit, which would be then be paid back to the investors.
When the funds from the sales of these properties didn’t turn a profit, Wilson allegedly used money from new investors to pay the previous investors. Attorney General Bill Schuette has described this as “the trademark of a Ponzi scheme.”. Wilson also is said to have pocketed about $47,000 of the investment money for his personal use.
In January 2013, the Attorney General’s office filed nine felony counts against Wilson, which included:
Three counts of fraudulent sale of securities and sale of unregistered securities and
One single count of continuing a criminal enterprise,
One count of larceny by conversion $20,000 or more,
One count of larceny by conversion between $1,000 and $20,000.
One count of embezzlement from a vulnerable adult of $50,000 or more but less than $100,000
One count of false pretenses of $1,000 or more but less than $20,000;
One count of securities-fraudulent sales
Wilson disputed these charges, saying that he helped to create more than 100 jobs and renovate more than 70 outdated and damaged houses. But before he could be arraigned on the charges, Wilson left the country and sought sanctuary in Germany, where he has lived for one year.
On Wednesday, January 20th, the Dresden police arrested Wilson, and the following day the Attorney General’s office received a notification from INTERPOL that he was in custody. The Attorney General began paperwork for the extradition process immediately.
On May 15th, Wilson will be transported from Frankfurt, Germany, to Detroit by the U.S. Marshals Service. He will be turned over to the Attorney General investigators at Detroit airport and transported to the Bay County Jail. His arraignment is scheduled for 1:30pm on Friday, May 16th before the Honorable Judge Dawn Kilda, in the 74th District Court.