OKLAHOMA CITY (AP) - Authorities say three Oklahoma City men have been running a Ponzi scheme that has taken in at least $2 million during the last 18 months, but two of those men deny being involved in any illegal activity.
A judge has frozen the assets of Brian McKye, Joe Don Johnson and James Farnham, along with those of six Oklahoma City-area businesses.
In filings in Oklahoma County District Court, the state Securities Department accuses the three men of fraudulently selling investment notes issued by five local businesses.
The agency's court petition says McKye, Johnson and Farnham promised returns of 8 percent to 19 percent for their clients on investments secured by risk-free real estate notes.
Irving Faught, the Securities Department administrator, says officials believe more than $2 million might be involved. At least 50 investors have been identified.
Clell Cunningham, an Oklahoma City attorney representing McKye,
says McKye denies the allegations, and Johnson also denies breaking
any laws in the matter.