Norfolk man accused of ponzi scheme pleads not guilty

NORFOLK

A Norfolk man suspected of defrauding 4,000 investors of at least $1.5 million pleaded not guilty to federal charges Wednesday.

In an indictment filed last week, federal authorities released more information on charges against Benjamin J. Seigler, including details of 20 recorded telephone calls in which Seigler pitched high-yield investments.

An assistant U.S. attorney on Wednesday called the program nothing more than a Ponzi scheme.

Seigler, 43, of Norfolk, faces a 28-count indictment charging him with mail fraud and unlawful financial transactions. A magistrate judge set the case for trial on Oct. 6.

At Seigler's arraignment Wednesday in U.S. District Court, Assistant U.S. Attorney Kevin Comstock said some 4,000 investors in the United States, Canada and the Caribbean lost money to Seigler. He said Seigler ran a pyramid-type investment program that typically only benefits the individual at the top.

Seigler promised high rates of return for small investments. The indictment says that Seigler last fall began taking investments of $42.60, promising returns as high as $154,000 in a few months. Later, he upped the initial investment to $55.10, the indictment says.

He ran the program from his apartment on Pall Mall Street, holding daily telephone conference calls with new investors. Prosecutors said he simply kept the money himself, investing some in gold bullion and real estate.

The U.S. Postal Inspection Service started investigating Seigler late last year after investors began complaining. Even after learning of the investigation, Seigler continued soliciting customers, the indictment says.

The self-proclaimed pastor claimed his investment programs were "God-given," the indictment says. He is also alleged to have claimed making so much money that he had to give away millions of dollars.

He was cited in the indictment as saying in a March 5 sales pitch call: "I had more gold chains than Mr. T had. Rings on all fingers. Ten cars. Big mansions."

Seigler, though, was a failed building contractor who had declared bankruptcy in Pennsylvania before moving here, according to public records. "I mention to people that all these opportunities, they not scams, they not rip-offs, it just takes some time to get paid," he is quoted as saying in the March 5 call.

The authorities said no one got paid in the program. They have seized more than $1 million in cash, plus automobiles and electronics, which they have said that they hope to use to repay alleged victims.

Seigler's attorney, John Fletcher, declined to comment Wednesday.

Seigler's wife declined to answer questions Wednesday outside court, other than to say, "I don't know anything about my husband's business."

Seigler remained in jail Wednesday but is expected to be released on bond.

Tim McGlone, (757) 446-2343, tim.mcglone@pilotonline.com