Patrick Kiley, two others indicted in Trevor Cook ponzi scheme

Categories: Law
Thumbnail image for trevor cook mug.jpg
Cook is serving a 25-year sentence for masterminding a Ponzi scheme. Did radio personality Pat Kiley help him?
A year ago, conservative radio show host Patrick Kiley was suing reporters for tying him to Trevor Cook's $190 million Ponzi scheme.

But it looks like Kiley's vehement denial of wrongdoing hasn't persuaded the feds.

Kiley's homemade radio show, broadcast on 200 stations including KSTP 1500, was called "Follow the Money." When investigators followed the money, it led to Kiley.

An indictment unsealed Wednesday accuses Kiley and two others -- Jason Bo-Alan Beckman and Gerald Joseph Durand -- of playing key parts in Cook's scheme.

The indictment weaves a long and complicated tale of how the three men were affiliated with Cook, accusing them of wire fraud, mail fraud, conspiracy to commit mail and wire fraud, and money laundering.

Cook originally pleaded guilty to masterminding the international scheme last summer.

To bait investors, Cook had offered them high, no-risk returns if they bought into a financial currency program. Unfortunately for the investors, Cook's pitch was more or less a fairy tale. All told, he screwed in the neighborhood of 900 people, earning him a 25 year prison sentence.

According to the indictment, Kiley, Beckman, and Durand "provided various descriptions to victim investors about how the currency program worked" and tricked investors into believing the program was making the promised returns when it was not. They are also accused of participating in the illegal wire transferring of millions of dollars.

Some of the invested money was diverted to the three men, along with Cook and Christopher Pettengill (another Cook associate who pleaded guilty last month), according to the indictment.

The indictment also includes e-mail exchanges between the accused men that appear to detail a plan unraveling.

In a July 21, 2008 e-mail, Penttingail tells Cook and Beckman that he is "dodging bullets" from a former sales agent who is "not beyond going the extra mile in hosing us."

A couple weeks later, Beckman sent another panicked e-mail to Cook about someone inquiring into the currency program.

"Now the ship begins to sink," writes Beckman. "This is not good. I will needless to say take care of it, I just wanted you to know."

All three men still deny doing anything illegal. Kiley and Beckman have both been released from custody on $100,000 bail.

Previous Coverage:

  • Trevor Cook pleads guilty in $190-million Ponzi scheme
  • Accused Ponzi schemer Pat Kiley sues media for calling him a Ponzi schemer
  • Best Scandal, 2011: The Trevor Cook Affair

  • My Voice Nation Help
    0 comments

    Now Trending

    Minnesota Concert Tickets

    From the Vault

     

    Loading...