Former Duluth Man Pleads Guilty to Mail Fraud
Posted at: 01/18/2013 10:23 AM
| Updated at: 01/18/2013 10:24 AM
MADISON, Wis. (AP) - A former Minnesota man accused of defrauding investors out of more than $2 million has pleaded guilty to mail fraud.
Federal prosecutors say Garry Milosevich, formerly of Duluth, and his partner, Daniel Tepoel, ran a fraud scheme from 1997 until 2007.
They told investors they had access to international trading programs that didn't exist. They used the investment money to travel and purchase construction materials for a failed Grenada resort.
Investors never received promised gains and lost about $2.5 million in principal.
Tepoel was sentenced to 11½ years in prison in 2008.
Milosevich was captured in Honduras last year. He entered his plea Thursday in federal court in Madison. He could face up to 20 years in prison when he's sentenced in April.
His attorney didn't immediately return a message.
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