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Former Lititz man faces federal criminal charges for investment scam | Local News


Former Lititz man faces federal criminal charges for investment scam | Local News


A former Lititz resident now living in North Carolina is facing federal criminal charges of bilking $7.5 million from dozens of investors by taking outsize commissions and management fees on various unregistered securities he sold.

A federal grand jury has indicted Marlin S. Hershey, along with his business partner Dana Bradley, on charges of mail and wire fraud conspiracy, mail fraud, securities fraud and money laundering conspiracy for the alleged scheme that lasted from 2009 to 2021.

The charges were announced Friday by the U.S. Attorney’s Office in the Western District of North Carolina. Hershey was released on bond following a court hearing Friday, during which he pleaded not guilty. Bradley is scheduled to appear in court Monday.

The indictment says Hershey and Bradley, both 52 years old, provided false and misleading materials to investors buying the securities.

For example, investors were told that nobody would be paid a commission when in fact Hershey and Bradley took a 10% commission on initial investments, with additional commissions levied on follow-up investments, according to the indictment. Hershey and Bradley also both received undisclosed “management fees” from the various entities through which they took investments, the indictment says.

Hershey and Bradley also hid the true financial condition of investments by making…

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