SAN FRANCISCO (AP) — A northern California man has been indicted by a federal grand jury for stealing $2 million from an educational nonprofit.
62-year-old Douglas Hollingsworth pleaded not guilty in U.S. District Court to nine counts of wire fraud associated with taking fraudulent loans from the National Education Foundation.
The indictment said Hollingsworth, doing business as Baytree Investors, claimed to have created a trading scheme that would return significant interest.
The foundation’s chairman, Appu Kuttan, made nine loans to Hollingsworth between 2008 and 2009. Hollingsworth promised to pay it back at four percent interest per month.
Yet prosecutors say Hollingsworth’s account showed no investment activity, instead only transfers to his own accounts that were used for personal expenses.
The next hearing is Sept. 28.
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