A man from the US state of Wyoming has pleaded guilty to several charges in a case that featured an investment fraud involving the use of a false letter of credit (L/C).

The case was brought against Hamilton citizen, Dan Oaheyoh Two Feathers, after an investigation by the Federal Bureau of Investigation and the Internal Revenue Service.

He pleaded guilty to four offences - investment fraud, conspiracy to commit investment fraud, money laundering and receipt of stolen property.

Huge returns

Investigations into Two Feathers' activities began in 2008 when he was promoting the sale of securities for a business, DTF Consulting Group, which he had set up with two other men.

The three men came up with a scheme in which they promised investors what they described as discounted government securities, which would yield huge returns for people who invested in them.

Fake L/C

They produced a fake L/C, ostensibly from Wachovia Bank for US$1.5 billion, to try and convince potential investors that the securities represented a genuinely safe investment opportunity.

In all, eleven people were duped into making investments. They lost about US$800,000 when it was revealed that the investments were fraudulent.

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