Somerset man convicted of running $2.2 million ponzi scheme

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LONDON, Ky. (WYMT) - One man from Somerset was found guilty of several fraud charges by a federal jury sitting in London on Tuesday.

A report from the United States Department of Justice shows that Rodney Scott Phelps, 58, was conspiring with Jason T. Castenir to operate a long-running Ponzi Scheme.

Phelps was convicted of 12 counts of wire fraud and one count of conspiracy to commit wire fraud.

Reports also show that the pair defrauded dozens of people through three fake investment opportunities through their company Maverick Asset Management LLC (“MAM”) and the promise of funding through the non-existent "Phelps family Trust".

Between the founding of MAM in 2012 and late 2014, the pair stole approximately $2.2 million.

The investigation was conducted by the Federal Bureau of Investigation, assisted by the Internal Revenue Service and the Criminal Investigation Commodities and Futures Trading Commission.

Phelps is scheduled to appear for sentencing on December 3rd, 2019.
Castenir pleaded guilty to charges in 2017 and is scheduled to be sentenced on September 23rd.

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