DES MOINES, Iowa – William Jack Berg, 51, of Waukee, Iowa, admitted in federal court on June 10 to running a multi-year fraud scheme that ripped off over a dozen people to the tune of $1.5 million. Berg, a supposed financial advisor, didn’t invest a dime of their money – instead, he spent it on himself, leaving his victims high and dry.
Court records detail a brazen pattern of deceit stretching from at least January 2019 through May 2023. Berg targeted individuals in Central Iowa, Saint Louis, and beyond, convincing them to liquidate existing investments and hand over the cash to his companies, “W Holdings of Iowa” and “Excel Performance Management.” He promised investment opportunities that were a complete fabrication.
The feds didn’t just uncover financial irregularities; they found a lifestyle fueled by stolen funds. Berg’s spending spree included vehicles, jewelry, rent, travel, groceries, gas, clothing, and frequent dining. A particularly galling detail emerged: a $37,343 check written in February 2022 to a Clive, Iowa jewelry store for a custom 14 karat white gold engagement ring. The ring, boasting a 2.20 carat oval cut diamond and 38 additional diamonds totaling 1.04 carats, will be forfeited as part of Berg’s plea agreement, alongside other fraudulently purchased jewelry.
But the scheme didn’t end with lavish purchases. Berg compounded the fraud by paying out “returns” or “dividends” to earlier victims using money he’d already pilfered from later victims – a classic Ponzi scheme tactic. He admitted to knowingly making false representations to enrich himself at the expense of those who trusted him. The man wasn’t just stealing money; he was stealing futures.
Berg is scheduled to be sentenced on October 11, 2024. He’s facing up to twenty years behind bars on the wire fraud charge and another ten years for money laundering. The final sentence will be determined by a federal district court judge, taking into account sentencing guidelines and other legal factors. Restitution to the victims will also be ordered, though the amount remains to be determined.
United States Attorney Richard D. Westphal of the Southern District of Iowa announced the guilty plea. The investigation was a joint effort by the Iowa Insurance Division’s Fraud Bureau and the Federal Bureau of Investigation. Assistant United States Attorney Adam J. Kerndt is prosecuting the case, and will undoubtedly seek a sentence that reflects the scale and callousness of Berg’s betrayal.
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Key Facts
- State: Iowa
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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