A jury in the US has indicted two men and a woman resident in the San Francisco Bay area on charges of wire fraud and wire fraud conspiracy.

The defendants allegedly used fake letters of credit (L/Cs) and other false documents to dupe clients into believing they were investing in high yield financial instruments.

False documents

The indictment alleges that, from 2008 until at least 2012, the trio used two entities, Raigold LLC and Success Bullion USA, to market and sell fraudulent financial instruments.

These included what the defendants referred to as 'standby L/Cs' and 'proof of funds statements'.

Fraudulent representation

The indictment alleges the defendants fraudulently represented to their clients that the standby L/Cs and proof of funds statements could be used to collateralise high-value loans.

The trio also claimed the documents could be used to lease assets from Success Bullion USA, and obtain lines of credit for, among other things, accessing high-yield private trading platforms.

Fictitious statements

The five-count indictment charging Kenneth Taylor, Sharon Ringgenberg and Craig Scott alleges that Taylor and Ringgenberg created fictitious account statements that falsely stated Success Bullion USA managed US$500 million on behalf of its clients.

Taylor and Ringgenberg also allegedly misrepresented to clients that they transmitted Success Bullion USA's financial instruments to Europe and elsewhere.

The trial is set to begin in May and the defendants could face jail terms of up to 20 years if found guilty.

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