U.S. Attorney Kenneth Magidson announced that Dean Lester Springer Sr. has surrendered to federal authorities to face charges in connection with his sale of shipping containers for Intermodal Wealth and World Container.

Springer is charged with conspiracy to commit mail and wire fraud, conspiracy to launder funds, and securities fraud. The superseding indictment, returned October 1, 2014, also names co-defendant John Patrick Acord.

Intermodal Wealth allegedly promised 13% to 16% per year guaranteed returns for investors who purchased shipping containers from the company. Investors would purchase the containers and the company was supposed to then lease them to others to generate income, according to the charges. However, Intermodal actually owned very few containers and none were leased.

To continue the scheme, the defendants allegedly provided investors with some money generated through new investors rather than from actually leasing the containers.

According to the indictment, Springer began as a salesman for Intermodal. Following a cease and desist order against Intermodal, Springer then allegedly formed his own company called World Container in an effort to continue under the same business model. The indictment accuses Springer of misleading investors by reporting that World Container was not associated with Intermodal Wealth. He also allegedly misled investors by stating World Container was his company and that he would use their money to purchase shipping containers and lease them on their behalves. According to the indictment, Springer actually sent the investors’ money to Jones and Acord in Panama and was paid a commission for the sale.

The indictment also alleges that Springer failed to disclose material facts to investors in the sale of the securities as required under federal law.

The total loss in relation to this scheme is estimated at approximately $10 million.

If convicted, Springer and Acord face up to 20 years of imprisonment and a fine of up to $500,000 or twice the value of the funds laundered.