Colman Man Accused of Scamming Investors Out of $100,000
|September 12, 2014||Filled under Iraqi Dinar News|
Iraqi Dinar News -
A Colman man is accused of ripping off dozens of South Dakota investors in what a federal indictment calls a fraudulent loan scheme that bilked investors out of more than $100,000.
The 71-year-old man now indicted on wire fraud charges, Gene Drong, says he hasn’t done anything wrong, and that the people he promised loans to in exchange for $5,000 fees will see their money soon.
“I didn’t scam anybody,” Drong said Wednesday. “It’s not true.”
Drong, who owns the credit card processing firm Dakota Card Services, Inc., says he has investments in coal mines and Iraqi Dinar currency that are sure to pay him huge sums. One investment could pay him $100,000 as soon as next week, he said.
That money has been promised to his investors for what he called “brick-and-mortar” projects, and Drong collected $5,000 “security deposits” from each of them to secure the loans.
The federal indictment says 25 clients paid Drong the fees in exchange for $46 million in promised loans. The money was collected between July 2013 and May of this year, the indictment said.
He was ultimately indicted on 21 counts of wire fraud, each of which is punishable by up to 20 years in prison.
Drong says he’s returned the $5,000 to at least four of the investors he’s now charged with wire fraud for collecting from, however. Others have refused to take their security deposits back, he said.
“I’ve offered to pay them all,” Drong said. “They don’t want it. They want their projects funded.”
Drong said he was surprised to hear that he’d been indicted.
The investors listed in the 21-count indictment include several Sioux Falls-area businesses and business owners, including MedStar Ambulance of Brandon and Plagman Farms of Alexandria.
Med-Star owner Jay Masur declined to comment on Thursday. A call to Plagman Farms was not immediately returned.
Drong is scheduled to appear in court in Sioux Falls on Tuesday.
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