A South Florida man accused of running a $40 million Ponzi scheme has turned himself in to face 6 counts of securities fraud.

Federal prosecutors said 35 people (many of them from the Hispanic community) handed over millions of dollars to Luis Felipe Perez, believing the money was going to his jewelry business or providing financing to pawnshops.

Authorities say he used fake diamonds to convince some investors that their money was safe with him.

In addition to the criminal charges, the U.S. Securities and Exchange Commission filed a lawsuit against Perez, accusing him of breaking federal securities laws.

The SEC suit alleges Perez, 39, offered investors “no risk” loan agreements that promised annual returns of 18 percent to 120 percent through monthly interest payments.

source: http://www.sun-sentinel.com/news/local/florida/fl-luis-felipe-perez-ponzi-20100610,0,3226239.story