According to a news release from the U.S. Attorney’s Office, District of Kansas, Federal prosecutors have filed a 42-page indictment alleging that a group of men swindled investors out of $132 million with false promises and fraudulent reports.

The 67-count indictment alleges that from 2004 to 2008 a team of seven men executed a scheme in which they distributed false and fraudulent brochures, joint venture agreements, application agreements, reports, updates, profit and loss statements and other documents designed to entice investors with false promises of high returns on investments in companies that leased drilling rigs and related businesses.

The indictment alleges:

. The conspirators worked together to execute the scheme by mailing prospective investors documents that contained false and fraudulent representations and promises, and after the defendants had obtained money from investors they sent investors false and fraudulent reports, updates and profit and loss statements.

. The conspirators used investor funds to pay a $300,000 settlement with the Colorado Securities Commission, which they fraudulently failed to disclose to investors.

. The conspirators made false claims to potential investors, telling them they would be paid every quarter, they would receive a 25% to 40% annual return and that the companies were already seeing returns in the 15% to 40% range.

To read the news release from the U.S. Attorney’s Office, District of Kansas click here.