An alleged letter of credit (L/C) fraudster has filed for bankruptcy in the US in an attempt to settle nine fraud claims made against him.

Nathan Reuter of Columbia was being sued in a civil court in connection with several investment scams allegedly perpetrated under cover of the Vertical Group, the business he founded.

Accusations

Nine people were suing Reuter. They claim he and other conspirators conned them out of millions of dollars during their business dealings.

Reuter has filed a petition for bankruptcy, which apparently puts a halt to the prosecution of lawsuits related to the alleged frauds. The filing lists the nine people suing him as creditors, with more than US$3 million owed to them.

Standby L/Cs

In September 2005, Daryl Miles Brown, the president of Vertical Mortgage Banc, was arrested on suspicion of three counts of fraud.

He was accused of using standby L/Cs that promised to offer high rates of return on investments.

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