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Federal Prosecutors Say They Break Up $700 Million Dollar Fraud Scheme; Ventura County Man Arrested

Federal prosecutors say a Ventura County man is among three people arrested for a $700 million dollar fraud scheme. Prosecutors say they were operating what amounted to a high tech Ponzi scheme using bitcoins. They operated a business called BitClub Network, which got people to invest in cryptocurrency funds.

It rewarded those who helped recruit new investors. In a promotional video, they said the fund was too big to fail, and promised big returns on investments. Prosecutors say one of those arrested was Joseph Frank Able of Camarillo. They say he’s charged with conspiracy to offer and sell unregistered securities.

Two more people are still being sought in connection with the operation.

Lance Orozco has been News Director of KCLU since 2001, providing award-winning coverage of some of the biggest news events in the region, including the Thomas and Woolsey brush fires, the deadly Montecito debris flow, the Borderline Bar and Grill attack, and Ronald Reagan's funeral.