SAN FRANCISCO (CBS SF) — A 55-year-old Indio man was indicted Friday by a federal grand jury in San Francisco on charges related to a $15 million Ponzi scheme involving about 50 victims between November 2012 and May 2015, according to the U.S. Attorney’s Office.

Joey Stanton Dodson faces four counts of wire fraud, three counts of mail fraud and three counts of money laundering in connection with the activities carried out by several companies Dodson operated, collectively known as Citadel Energy LLC, prosecutors said.

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Dodson was arrested Friday and that same day made an initial appearance before U.S. Magistrate Judge Shashi H. Kewalramani.

The indictment says that, during that 2.5-year period, Dodson allegedly raised $15 million by soliciting investments in three limited partnerships he said would provide water-related services to oil and gas companies in North Dakota.

The indictment further alleges Dodson tempted investors by making numerous false misrepresentations about the companies, including about how their money would be used, how much he would be paid and the status of his companies being acquired by a private equity firm.

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The indictment also alleges Dodson routinely commingled money of three separate companies, resulting in investor money paying the expenses of projects unrelated to serving oil and gas companies.

Also alleged in Friday’s indictment is that Dodson used more than $1.3 million of investor money for his own personal benefit, including repaying former investors in unrelated investments, gambling activity, his wife’s BMW car and other expenses.

If convicted, Dodson faces maximum sentences of 20 years in prison and a $250,000 fine each for the wire fraud and mail fraud charges, and a maximum of 10 years in prison and a $250,000 fine if convicted of money laundering.

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