Accused Ponzi schemer Pat Kiley sues media for calling him a Ponzi schemer

M.Keefe

The feds say Pat Kiley's microphone was less than golden

Kiley, who is acting as his own lawyer in the case, says Fred Melo of the Pioneer Press and Dan Browning and Sarah Gorvin of the Star Tribune violated his first amendment rights and defamed him in their reporting on the unfolding Ponzi scheme. The feds say that Cook and Kiley hoodwinked their victims into making allegedly safe, high-yield foreign currency investments that turned out to be neither.

Cook and Kiley told investors that their money would be invested safely and profitably, said Merri Jo Gillette, Director of the SEC's Chicago Regional Office. Instead, they went on a $40 million-plus spending spree with investors' money and lost another $40 million in risky foreign currency trading.

Kiley's suit also names the two papers as defendants, as well as a former colleague, Bob Chapman, and several of his co-defendants in the SEC's Ponzi case. Kiley wants a total of $42 million from the defendants.

Cook pleaded guilty to his part in the racket in April and is awaiting sentencing.

In his weekly radio program "Follow The Money with Pat Kiley: World Renowned Radio Show for Truthseekers," Kiley recommended his listeners consider foreign currency speculation.

Melo says he hasn't yet seen the suit against him and he's not dwelling on it.

"I'm going to let my employer handle it and I'm moving on to the next story," he said.