Mckinney Man Admits His Role in $6.4 Million Diamond Investment Fraud Scheme
Craig Allen Otteson, 65, of McKinney, Texas, appeared before U.S. Magistrate Paul D. Stickney on October 19, 2017.
According to the indictment, Otteson acted as the Managing Member and Chief Compliance Officer of Stonebridge Advisors, LLC, located on Belt Line road in Dallas. The company was involved in the diamond investment scheme that took in over $6.4 million from investors.
Otteson pleaded guilty to one count of mail fraud, a charge that carries a maximum penalty of not more than 20 years in federal prison and a $250,000 fine. Restitution could also be ordered.
Co-defendants Jay Bruce Heimburger, 58, of Dallas, and Christopher Arnold Jiongo, 56, of Houston, previously pleaded guilty to their roles in the scheme and are awaiting sentencing.
The indictment alleged that Jiongo drafted $50,000 diamond notes which Jiongo, Otteson and Heimburger later used as investment vehicles to generate investment funds. However, the scheme ultimately led to the bankruptcy of Worldwide Diamond, which filed for bankruptcy on October 1, 2013.
Otteson faces sentencing before U.S. District Judge David Godbey on October 23, 2017. The case serves as a reminder of the importance of conducting thorough research before investing in any scheme, especially those involving diamonds and high-pressure sales tactics.
Key Facts
- State: Texas
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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