OMAHA, Neb. (WOWT)– Investors in an alleged million-dollar Ponzi scheme worry they won’t get any of their money back. But they are closer to getting justice.
Several Six on Your Side investigations exposed questionable claims by a Papillion tech company and now the owner has been indicted.
Blazefly promised to roll several phone apps into one and founder Jamie Crager downloaded investor trust by dropping names.
Investor Kip Hulbert said, “He told me he was in with President Trump that he was in with Robert Kraft of the Patriots and all that and come to find out he knows nobody. ”
And nothing left of their investments is what Kip Hulbert and Peg Christensen are finding out in a 9 count Federal Indictment.
Investor Peg Christensen said, “He’s finally having to face the music and I trust that the judicial system will do its work.”
The indictment alleges during the last election the Crager pitched Blazefly to a Trump campaign staffer but got nowhere yet Crager told investors the trump team would sign a deal. The feds also claim Crager lied about meeting the mayor to get the app on city phones. The indictment alleges Crager mislead investors by implying Blazefly had partnerships with tech giants like Cox Communications, IBM and even a Russian cell phone company. All of that false.
Instead, it’s alleged he spent investor money on his mortgage payments, a new car and various purchases for himself.
Christensen said, “I suspected that but I couldn’t get him to give us a financial accounting of how he was using the money.”
The indictment alleges investors in Blazefly lost a total of a million dollars. Hulbert and his wife invested $150,000 and Christensen nearly $30,000. Blazefly attracted 27 investors with a promise of a 6% return.
Hulbert said, ”If we get our money back great but it doesn’t look like that’s going to happen.”
Crager pled not guilty to 9 counts of mail fraud and declined comment entering Omaha’s Federal courthouse.
Crager has been released on pretrial supervision. =The feds allege the Ponzi scheme went on for four years and investors are located in five states and Canada.