2 Northern Calif. investment advisers to stand trial in alleged $200 million Ponzi scheme

2 Calif. men to stand trial in $200M Ponzi scheme

SANTA ROSA, Calif. — A judge has ordered two former Northern California investment advisers to stand trial on charges that they swindled people out of more than $200 million in a Ponzi scheme.

A Shasta County Superior Court judge on Wednesday ordered trials for Gary Armitage and James Koenig after a preliminary hearing that stretched for nearly two months.

Armitage faces 50 courts and Koenig faces 42 counts, including securities fraud. A third defendant accepted a plea deal in April.

Prosecutors say the men operated 55 businesses selling real estate investments that collapsed over a 10-year period. The charges allege the men defrauded more than 2,000 people out of their life savings.

Armitage and Koenig are due back in court June 14, when a trial date may be set.