James R. Cruise Jr. is accused of swindling 25 Massachusetts investors of more than $1.2 million in the scheme, according to the Cape Cod Times. Investors, including individuals from Yarmouthport and Bourne testified that Cruise never gave them interest payments on their investment.
Officials believe Cruise created 10 business entities that funneled into one company, the Austin Group. Cruise admitted to the state Securities Division that he used account money for personal expenses, according to a state press release.
The complaint alleges Cruise purchased at least 25 properties in Massachusetts, New Hampshire and Texas once valued at more than $18 million.