Town and Country Man Pleads Guilty to Federal Fraud Charges
Grahame E. Rhodes, 61, pleaded guilty to one felony count of wire fraud.
A Town and Country man has pleaded guilty to federal fraud charges in connection with a $2.5 million scheme between 1995 and 2011.
Grahame E. Rhodes, 61, pleaded guilty to one felony count of wire fraud before U.S. District Judge Catherine D. Perry. His sentencing is set for March 15. Rhodes could be sentenced to 20 years in prison and fines up to $250,000.
A statement from federal prosecutors said Rhodes was a self-employed securities trader who promised investors high rates of return on their investments and used money from new investors to pay existing investors.
"Rhodes told them he had invested their money when he had not, and delayed requests for withdrawal of their money by creating false excuses to justify the delay," the statement said. "On many occasions he converted the money for his own personal use."
Rhodes was arrested on the charges in July.