Bismarck, ND –On August 5, 2013, Robert H. Medhus, a former securities broker who defrauded 18 clients of over $900,000 in a Ponzi-like scheme was sentenced to ten years in prison by Judge Frank Racek today in Fargo’s East Central District Court. Medhus previously pled guilty in June to 13 counts of securities fraud, 2 counts of theft of property, and 1 count of selling unregistered securities. Judge Racek sentenced Medhus to ten years each on counts 1 and 2 (theft of property), ten years each on counts 3 through 15 (securities fraud), and for count 16 (selling unregistered securities) he was sentenced to ten years. Medhus will serve his sentence concurrently for a total of ten years in prison. Judge Racek identified how much damage financial crimes can do and sent a strong message to individuals who seek to conduct investment fraud in North Dakota.
The prosecution was the result of an investigation of investor complaints by the North Dakota Securities Department which uncovered the fraudulent scheme and a subsequent criminal referral to the Cass County State’s Attorney