SIOUX FALLS, S.D. (AP) - A South Dakota businessman accused of defrauding investors in a scheme to build an $11 million fish farm will plead guilty to wire and mail fraud, according to court records.
A trial for Tobias Ritesman is set to begin next week, but he’s entered a petition in federal court that shows he intends to plead guilty to all 18 counts against him, the Argus Leader reported.
Ritesman and his agents began soliciting money from investors in 2016 for Global Aquaponics in Brookings, an indoor seafood farm that would also grow organic vegetables.
The company sought $5.4 million from investors for what Ritesman billed as a pilot project for future seafood farms that could help end world hunger, according to a memorandum sent to investors. The investors were told that the company already had $5.6 million in cash, which wasn’t true.
They were also told other falsehoods about Ritesman, including that he had earned a master’s degree in business from the University of California-Los Angeles, according to the memo. Ritesman, who portrayed himself as an international business consultant and was known to handle a pistol during meetings, also claimed to have won a bogus award from the United Nations.
According to the guilty petition, Ritesman used the funds he collected from investors for personal expenses.
A second executive accused of misleading investors in the case, Brookings businessman Timothy Burns, is still scheduled for trial next week.
Burns’ lawyer wasn’t immediately available for comment.
___
Information from: Argus Leader, http://www.argusleader.com
Please read our comment policy before commenting.