Originally published Thursday, October 14, 2010 at 3:35 PM

http://seattletimes.nwsource.com/html/businesstechnology/2013164237_bergcharges15.html

Federal prosecutors charged Frederick D. Berg with 10 counts of wire fraud and money laundering Thursday, alleging he conducted a long-running Ponzi scheme that raised over $350 million for purported mortgage investments but actually funneled millions of dollars to himself.

Berg, whose Meridian Group encompassed more than a dozen investment funds, a luxury bus company and other interests, had more than 1,000 investors who have lost more than $100 million from the fraud, according to charging papers.

Nine Meridian Mortgage investments funds have been placed in Chapter 11 bankruptcy. Berg's personal assets — including homes and the bus company, doing business as MTR Western — are in a separate Chapter 11 case.