Loans From Loyal Supporters

The leader of a political movement and six associates raised money by asking supporters for loans. Lenders were promised repayment on set dates, often with about 10% yearly interest. Loans ranged from $10,000 to $250,000, and many lenders lost large sums. Prosecutors said the group never meant to repay unless a lawsuit or bad publicity forced it, and hid its money troubles. The accused said they meant to repay, but government bankruptcy action and interference stopped them. Fraud needs proof they knew the promises were false.