A South Carolina man is among three being charged in Los Angeles for allegedly operating a $26 million investment scheme that victimized hundreds of investors around the country. Wayne Flesher, 59, of Myrtle Beach, and two others from California were arrested last week by agents with the U.S. Postal Inspection Service and the FBI.

According to the 17-count indictment returned by a federal grand jury in Los Angeles alleges that the three men committed mail fraud by soliciting over 700 individuals around the country to invest money into an alleged fraudulent advertising scheme. The three men attempted to ask individuals if they would invest in one of two companies operated by the three men, known as Unlimited Cash Inc. and Douglas Networks Enterprises.

The defendants "allegedly instructed salespeople to advise potential investors that their money was to be used in advertising campaigns involving computer monitors known as "ad toppers." Investors were told that the ad-toppers would be placed on gas pumps, ATMs and vending machines. They were told that the ads on these toppers would generate monthly revenues of $54 per month, per machine. Investors were told that these ads were going to be purchased by large corporations like Coca-Cola, Gold's Gym and Paramount Pictures.

From 2001 to 2005, the three men took an estimated $26 million from hundreds of investors. The indictment alleges that the majority of the money was used by the men for personal expenses and to continuing the operation of the scheme by paying personal salaries, commissions and making ponzi-like payments.

Source: Beverly Hills Courier "Three people facing charges over $26 million investment scheme" 08/17/2010