The investor was, in reality, part of an undercover FBI team that posed as wealthy investors and investment managers in an effort to stop fraudsters before they actually harmed victims.
Ferry, of Newport Beach, California, and Clinton, of San Diego, were each found guilty by the court of one count of conspiracy, two counts of mail fraud and six counts of wire fraud. They face a maximum penalty of 20 years in prison on each fraud count.
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Paul Martin, a former senior vice president and managing director of Bankers Trust, was found guilty in US District Court for the Central District of California for his role in the scheme in a separate trial on 3 August 2012.
On 21 August 2008, Ferry, Clinton and Martin were indicted along with Oregon resident John Brent Leiske, Canadian citizen and resident Alex Chelak, Iowa resident Richard Arthur Pundt, California resident Brad Keith Lee and Florida resident Ronald Nolte.
Evidence at trial established that, from February to December 2006, Ferry, Clinton, Martin and others conspired to promote a high-yield investment fraud scheme promising an extremely high return at little or no risk to principal.
Investors also were told that once they had passed compliance, they would become registered in Washington, D.C., with the Fed.
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