Alabama Attorney Arrested for Fraud
By Katie Hauser
Published on December 27, 2006
Allegations from the Alabama Securities Commission Director, Joseph Borg, state that Croft received roughly $493,000 from investors from 2001 through 2005. Croft allegedly told investors he would invest their money in the stock market. He then issued false profit statements to investors, and used their principal investments to pay false proceeds to other investors in a classic Ponzi scheme. Croft also took his own commission out of the initial investments, not out of profits acquired from legal trades. Of the money Croft received, about $430,000 was lost.
Croft was released on bond. If convicted, he could face up to ten years for each count with which he is charged.
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