HARRISONBURG, Va. (AP) -- A Harrisonburg man has pleaded guilty to charges of bilking more than $1 million from investors.
Paul Souder pleaded guilty on Wednesday to mail fraud and wire fraud in U.S. District Court in Harrisonburg.
U.S. Attorney Timothy J. Heaphy said Thursday in a news release that Souder used clients' money to pay his bills and buy new vehicles.
According to a statement of facts, Souder promised investors a return of up to 10 percent per quarter through online trading. He obtained money from at least 18 investors through a fraudulent promissory note program. He didn't report any losses incurred and used money obtained from new investors to pay profits to earlier investors.