A former St. Charles County stockbroker has admitted to a Ponzi scheme that cost investors hundreds of thousands of dollars.
The stockbroker, 56-year-old Kenneth Neely of St. Peters, pleaded guilty Wednesday to mail fraud in U.S. District Court in St. Louis. He will be sentenced in January.
Meanwhile, Secretary of State Robin Carnahan announced that her office has issued a cease and desist order shutting down the Ponzi scheme.
Carnahan says Neely directed his clients from two different brokerage firms to invest in a nonexistent real estate investment trust.
Regulators have accused Neely of defrauding at least 25 investors of more than $600,000.
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