Schuette Issues Third Round of Felony Charges Related to Diversified

Group Ponzi Scheme

Contact: Joy Yearout 517-373-8060

July 10, 2014
LANSING - Attorney General Bill Schuette today announced felony charges
against a Berrien County woman for her alleged role in an extensive multi-county Ponzi
scheme. Mary Faher, 56, of Stevensville, is accused of defrauding senior citizens out of
millions of dollars. The charges come as a result of an Attorney General investigation.
"Many unassuming Michigan citizens have been cheated out of their life savings
from the criminal actions of scam artists," said Schuette. "This will not be tolerated. We
will take aggressive action against lawbreakers who try to make a quick profit off Michigan
seniors."
Faher was employed as a licensed investment advisor for The Diversified Group
Advisory Firm LLC, an investment company, beginning in 2011. During her tenure with
Diversified, Faher is alleged to have made material misrepresentations of the investments
she marketed and sold to investors. It is purported that Faher falsely claimed that victims'
investments were principle protected, made false guarantees of high rates of return and
offered deceptive assurance that the investors could retrieve their money at any time
when in reality it would take an investor 30 years to realize a profit. It is also alleged that
Faher 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 risked their life savings.
The Attorney General investigation revealed Faher was allegedly funneling
investors' money into a Ponzi Scheme operated by a Saginaw man, Joel Wilson. Wilson
also faces extensive felony criminal charges including Racketeering. Faher allegedly
swindled investors out of more than three million dollars using dishonest tactics of
material misrepresentation and the investigation revealed she took an eight percent
commission, pocketing approximately $240,000 for herself.
Faher was arraigned on July 9, 2014 before Judge Angela Pasula in Berrien
County's 5
th
District Trial Court. Faher pled no contest to four counts of Securities Fraud
and waived her right to a preliminary examination. Faher agreed to pay restitution for all
victims and cooperate in the prosecution of Joel Wilson and other Diversified
employees. Faher is next expected to appear in Berrien County's 5
th
District Trial Court
on September 22, 2014 at 1:30 PM for sentencing.
History of Charges Related to the Diversified Group
Beginning in 2009, Joel Wilson allegedly scammed investors out of $8.5 million
selling unregistered securities through his operation of The Diversified Group Advisory
Fund LLC, an investment company. Wilson allegedly told investors that he would use
their funds to purchase distressed properties in the Saginaw area and Bay City
areas. The properties would later be refurbished and sold for profit, offering a return on
their investment.
As Attorney General Investigators closed in on Wilson's operation in late 2012, 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. With support from INTERPOL, the U.S.
Department of Justice, and the U.S. Department of State, Schuette successfully secured
Wilson's extradition from Dresden, Germany on May 15, 2014 and he is currently being
held in Bay County Jail in lieu of a $9 million cash surety bond.
In September 2013, Schuette announced felony charges against Shawn Dicken,
40, of Bay City, for her role as lead salesperson in the Diversified Group Advisory Firm
LLC investment scheme. Dicken failed to disclose the risks associated with the actual
investment in question - a highly leveraged real estate investment that could result in the
loss of all of the investors' money. Many investors risked their life savings. Dicken
swindled investors out of more than two million dollars through dishonest tactics.
Investigation revealed Dicken took an eight percent commission, pocketing approximately
$160,000 for herself.
Dicken was convicted of nine felonies, one count of Criminal Enterprises, one
count of Embezzlement From A Vulnerable Adult, and seven counts of False Pretenses,
in March 2014 and was sentenced on June 19, 2014 to 11 years, eight months to 20 years
in prison by Midland County Circuit Court before Judge Stephen P. Carras. Schuette has
requested more than $1.5 million in restitution for Dicken's victims.
Citizens who believe they may have been victims of Mary Faher, Shawn Dicken,
Joel Wilson or The Diversified Group are encouraged to file complaints with the Attorney
General's Office at www.michigan.gov/ag by clicking "File a Complaint."
A criminal charge is merely an accusation, and the defendants are presumed
innocent unless proven guilty.
Consumer Tips For Safe Investing
Schuette encourages Michigan citizens to exercise caution before investing their
money with those who promise exorbitant returns.
"Do your homework before handing over your hard-earned money," said
Schuette. "Take your time, ask questions, and be sure to confirm your broker is in good
standing with the State before signing on the dotted line."
Key tips to avoid falling victim to a Ponzi scheme or investment fraud include:
Check out your broker or adviser. Confirm that your broker and 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. Attorney General Schuette also offers specialized
consumer advice for Michigan seniors on how to avoid investment fraud through his
Senior Brigade consumer protection program, http://1.usa.gov/1qNtPkU.

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