The U.S. Attorney in Nashville has indicted the former owner of Cassman Financial Group for running a small Ponzi scheme. Jeffrey Cassman is charged with securities fraud from an alleged scam that went on from 2003 to 2005.
According to the indictment, Cassman told investors from around Middle Tennessee he would put their money in tax liens and other investments he called “fool proof.” Prosecutors say the 34-year-old had no intention of investing the money and instead used it for his personal expenses and to repay earlier investors. The Ponzi scheme totaled $400,000 and involved roughly a dozen clients.
A warrant was issued for Cassman’s arrest in December of 2008 for similar charges. His whereabouts remain unknown, and the U.S. Attorney’s office says he’s considered a fugitive.
If convicted, Cassman could face up to 20 years in prison for each of his two counts of fraud.
Cassman Financial had business addresses in both Nashville and Franklin.
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