KANSAS CITY, Mo. (AP) - A federal grand jury has indicted a former Missouri man in a Ponzi scheme that prosecutors say defrauded 39 investors out of $3 million.
U.S. Attorney Beth Phillips says in a news release that 72-year-old Ronald W. Shepard, formerly of Lee's Summit, was charged Tuesday in a 15-count indictment.
The indictment says Shepard's company, Safety Solutions in Lee's Summit, developed and marketed a trailer hitch called Tow-Safe. A patent application for the device was rejected.
Shepard also operated a real estate company and did tax returns for individuals.
Shepard allegedly received about $3.2 million from investors. Shepard allegedly returned about $1.2 million to investors and lost or spent the rest.