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Andrea Bitely
Megan Hawthorne
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FOR IMMEDIATE RELEASE
January 29, 2016

Schuette Secures Second Conviction of Saginaw Ponzi

Schemer
Former fugitive already serving prison time for previous felony
convictions
LANSING Michigan Attorney General Bill Schuette today announced he has secured a second
conviction of Ponzi schemer Joel Wilson, 33, of Saginaw. The second conviction is a result of
Wilson spreading his financial crimes across multiple Michigan counties. After being extradited
from Germany, Wilson was convicted in Bay County on March 5, 2015, of nine felonies,
including racketeering, larceny and fraudulent sale of securities.
Wilson was found guilty in Saginaw County on January 28, 2016 of:

One felony count of Securities Fraud, punishable by up to 10 years in prison and/or a fine of
$500,000.
One felony count of Selling Unregistered Securities, punishable by up to 10 years in prison
and/or a fine of $500,000.
One felony count of Larceny by Conversion over $1,000, punishable by up to five years in
prison and/or a fine of $10,000 or 3 times the value of the property stolen, whichever is greater.
Unfortunately, this man robbed many hard working Michigan families of their life savings,
said Schuette. While these additional convictions will not repay that money, it brings some
justice to the victims of this scheme.

Wilson was convicted during a bench trial presided over by Judge Janet M. Boes. He will next
appear in court for his sentencing hearing at a date to be set by the court. He is currently serving
a sentence of 105 months to 20 years in prison.
Background on Joel Wilson, Diversified Group
Beginning in 2009, Wilson scammed investors through his operation of The Diversified Group
Advisory Fund LLC, an investment company. Wilson told investors that he would use their
funds to purchase distressed properties in the Saginaw and Bay City areas. The properties would
later be refurbished and sold for profit, which would go to investors.
When funds Wilson collected from the sales of the unregistered securities failed to turn a profit,
he used new investor funds to pay returns to previous investors - the trademark of a Ponzi
scheme. In addition, Wilson pocketed approximately $583,000 of the investment funds to pay
his personal expenses and acquire personal assets.
In 2012, as Attorney General Investigators closed in on Wilson's operation, he fled the country
for Germany. Schuette filed multiple criminal charges against Wilson in January 2013 and
worked with federal officials to issue a warrant for his arrest in Europe. On January 20, 2014,
Wilson was arrested in Germany by Dresden Police. On January 21, 2014, Schuette's office
received notification from INTERPOL that Wilson had been arrested by European law
enforcement and summarily filed paperwork to extradite Wilson from Germany to face trial for
his pending criminal charges in Michigan. Wilson was successfully extradited on May 15, 2014.
Additionally, Wilson failed to disclose the risks associated with the actual investment in
questiona highly leveraged real estate investment that could result in the loss of all of the
investors' money. Many investors, including senior citizens, risked their life savings.
Consumer Tips For Safe Investing
Schuette encourages Michigan citizens to exercise caution before investing their money with
those who promise exorbitant returns.
Key tips to avoid falling victim to a Ponzi scheme or investment fraud include:

Check out your broker or adviser. Confirm that your broker or financial adviser is registered and
in good standing. Contact the Bureau of Commercial Services with the Department of Licensing
and Regulatory Affairs, at 517-241-6345, to check out your broker or adviser.
Beware of strangers touting strange deals. Trusting strangers is a mistake anyone can make when
it comes to their personal finances. Almost anyone can sound nice or honest on the
telephone. Say "no" to any investment professional who presses you to make an immediate
decision, giving you no opportunity to check out the salesperson, firm and the investment
opportunity itself. Beware of anyone who suggests investing your money into something you
don't understand or who urges that you leave everything in his or her hands.

Take your time - don't be rushed into investment decisions. Salespersons who use high-pressure
tactics to force an investor into an immediate decision are almost always pitching frauds. They
don't want you to think too carefully or find out too much because you may figure out that it's a
scam.
Keep tabs on your investments. Be wary when a financial planner says "leave everything to me,"
or "the plan is too complicated to tell you." Everything should be clear and explainable to you.
Monitor the activity on your account. Insist on receiving regular statements.
Ask Questions. Never be embarrassed or apologetic about asking questions for trading activity
that looks excessive or unauthorized. It's your money, not your broker's.
Keep Diligent Records. Keep all of your records relating to your investments, including notes of
conversations you have with brokers, salespeople, and financial advisers.
Consumers can find helpful advice and a list of questions to consider in Attorney General
Schuette's Consumer Alert for Ponzi Schemes, available on Schuette's website
at http://1.usa.gov/AGPonziAlert.
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