He admitted that he established an entity called the Advisory Services Group (ASG), purportedly to provide financial and investment management services to individual investors. He persuaded them to invest their money with him by lying to them, said prosecutors from the U.S. Attorney's Office.
For instance, he falsely stated that he had developed a "regression analysis" program that could predict whether mutual fund values would rise and fall. Additionally, he falsely said that he would invest his clients' money, prosecutors said.
Reimers has admitted that he did not invest their money; instead, he used it to pay his mortgage and buy luxury cars, vacations and hunting trips. He also used his investors' funds to fund two other businesses that he owned and operated, Plan Compliance Group (PCG) and Univest Capital Management (UCM).
PCG and UCM collected payroll distributions from thousands of employees and remitted them to institutional companies and to insurance providers, as directed by the employees. Reimersused the PCG and UCM cash flow to pay off ASG investors, who requested monthly dividends or who asked to close their account.
On March 12, the U.S. Attorney's Office charged Reimers with six counts of mail fraud and one count of money laundering. The maximum penalty for each count is 20 years in imprisonment, plus substantial fines and restitution.
His sentencing is scheduled for 10 a.m. Aug. 3 in Oakland.
Contact Jordan M. Doronila at jdoronila@DanvilleWeekly.com