Money manager accused of massive Ponzi scheme arrested in France

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Sherman Oaks financial advisor Bruce Fred Friedman, who fled the country while under investigation for allegedly defrauding investors of hundreds of millions of dollars, has been arrested in France, a spokesman for the U.S. attorney’s office said Tuesday.

Friedman, 60, ran a $228-million Ponzi scheme in which he promised to invest in rental properties but instead diverted millions of dollars to himself, family and friends, FBI Special Agent Perry Woo said in an affidavit. The U.S. attorney’s office charged Friedman on Sept. 3 with mail and wire fraud.

French authorities, acting at the request of the FBI, arrested Friedman on Sept. 13 in front of his hotel in Cannes, said Laura Eimiller, an FBI spokeswoman. She said the case was also investigated by the Internal Revenue Service.

Friedman is being held in a French prison awaiting extradition -- a process that could take several months, Eimiller said.

‘This is good news. This is something a lot of the investors have been looking for for a long time,’ said Steven Soltman, a Westlake Village lawyer who lost more than $1 million he had invested with Friedman’s company. ‘He’s caused a lot of people a lot of problems. Hopefully, justice will be done.’

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-- Stuart Pfeifer