NORWALK, Conn. -- A 55-year-old Norwalk man was arrested Friday on federal charges of defrauding three investors out of more than $400,000 and using the money for his own purposes, said U.S. Attorney Deirdre M. Daly.
James E. Neilsen was arrested on a criminal complaint, appeared before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and ordered detained.
According to statements made in court, it is alleged that Neilsen defrauded three individuals by persuading them to invest their money with him. Instead of investing funds as promised, he used the money to pay other investors and to make various personal expenditures.
The complaint charges Neilsen with wire fraud, an offense that carries a maximum prison term of 20 years.
This ongoing investigation is being conducted by the FBI with assistance from the Greenwich Police Department and the Connecticut Department of Banking.
Citizens with information that may be helpful to this investigation are encouraged to contact the FBI at 203-333-3512.
Click here to sign up for Daily Voice's free daily emails and news alerts.