Irvine man charged in Ponzi scheme

An Irvine man is scheduled to be arraigned Monday on charges he operated a Ponzi scheme that duped two dozen investors and raked in more than $10 million, federal officials announced Friday.

Richard H. Nickles, 57, owned Santa Ana-based Innovative Advisory Services Inc., a sham investment company he created in March 2009 that claimed to protect and grow investors’ wealth.

Nickles falsely advertised his financial advice to customers through local newspapers, including the Los Angeles Times and Orange County Register, claiming his company’s trades were insured by the government, prosecutors said.

He only accepted investments of $50,000 or more, officials said.

He collected more than $10 million and used much of it for unauthorized trades or to make payments on earlier investors, according to court documents.

The Securities and Exchange Commission put an injunction on his business earlier this year. He was arrested last month during a meeting with two victims in his office.

Nickles also tricked investors by representing himself as part of a separate, legitimate investment firm he once owned.

He’s is charged with four counts of mail fraud and two counts of securities fraud.