Ponzi scheme helped pay for luxury home in Costa Rica, horse farm in Wake County, prosecutors say

http://www.newsobserver.com/news/local/crime/article190916394.html

‘Ponzi scheme’ helped pay for luxury home in Costa Rica, horse farm in Wake County, prosecutors say

By Anne Blythe And Thomasi McDonald

ablythe@newsobserver.com

RALEIGH — Federal agents have charged the founder of VisionQuest, a Raleigh investment firm, with running an illegal “Ponzi” scheme that bilked investors out of nearly $15 million. Stephen Condon Peters, 44, was indicted by a federal grand jury on Wednesday, the day before a freeze on his assets was set to expire. FBI agents searched his business on Hargett Street in downtown Raleigh five months ago.

Peters has been accused of one count of investment advisor fraud, one count of fraud in the sale of unregistered securities, nine counts of wire fraud, four counts of engaging in monetary transactions in criminally derived property and one count of corruptly endeavoring to influence a federal agency. Peters is scheduled to appear in federal court on Thursday for a first appearance on the charges.
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From 2009 to 2017, prosecutors contend, Peters sold at least $15 million worth of promissory notes in VisionQuest Capital. Those notes were sold primarily to clients at another of Peters’ companies, VisionQuest Management. That, prosecutors contend, was a conflict of interest. In exchange for investments, investors were promised 8 percent annually in interest. If the investors agreed to forgo that interest and reinvest, they were promised a 9 percent rate of return, prosecutors contend.

But investigators contend Peters never invested the money into revenue-generating businesses. (snip) Investigators contend Peters used the money to support a lavish lifestyle that included a “luxury vacation home in Costa Rica,” a horse farm in Wake County where he lived, a Cadillac Escalade, properties in Jacksonville and Ferguson, N.C., farm equipment, a gun collection with rifles and pistols, diamond jewelry and more. Peters also is accused of skimming off the top of some of the investments.
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