‘American Greed’ to feature former Islander
Published 2:09 pm Wednesday, January 14, 2015
Former Island resident Frederick Darren Berg, accused of using his investment fund company to operate a $100 million Ponzi scheme, will be showcased on CNBC’s show “American Greed.”
Berg, 52, was indicted by a federal grand jury in November 2010 for wire fraud, money laundering and bankruptcy fraud, and sentenced in February 2012 in the District Court in Seattle to 18 years in prison.
Berg, who is currently serving his sentence in federal prison in California, will presumably not be available for interviews for the show.
Season nine of “American Greed,” a “true crime” documentary-style show about recent corporate and white collar crimes, premiered on Jan. 15. The show has featured stories on Bernie Madoff and the U.S. mafia, but focuses on common financial crimes like Ponzi schemes, real estate and investment fraud, identity theft, art theft, credit card fraud and money laundering.
Berg allegedly siphoned money from his company and concealed assets to bankroll a luxurious lifestyle. He owned two yachts, two jets, a luxury bus company and a waterfront home on Mercer Island. The mansion was sold to a Seattle businessman for $5.9 million in 2011. The home has 5,400 square feet, with 112 feet of waterfront.
According to news sources, producers for the series will be in Seattle this week filming an episode about Berg’s scheme, which he ran through his company, Meridian Group. The U.S. Attorney’s Office said was the largest Ponzi scheme ever prosecuted in Washington state.
Berg operated a series of investment funds purportedly for investment in seller financed real estate contracts, hard money loans, real estate and mortgage backed securities, according to Reporter archives.
Between 2001 and 2009, Berg used more than $100 million from over 800 investors for his own expenses and to keep his investment fraud going, according to records in the case. Meridian brought in over $280 million from investors over 10 years. Hundreds of victims lost their retirement funds and savings.
