Rosemount man sentenced to nearly 10 years for Ponzi scheme

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A Rosemount resident has been sentenced to nearly 10 years in prison for his role in running a Ponzi scheme that defrauded investors of millions.

In addition to the 117 month sentence U.S. District Court Judge Donovan Frank also ordered 56-year-old Charles Hayes to pay $21,82,090 in restitution and $7,580 in attorney’s fees for his victims. Hayes will also have to serve three years of supervised release following his prison term.

Hayes pleaded guilty in April of 2009 to one count of mail fraud, one count of wire fraud and one count of structuring transactions to avoid financial reporting requirements. He was arrested in February of 2009.

According to court documents Hays, operating as Crossfire Trading, had run his scheme from his Rosemount home since at least January 2006. He told potential investors he day-traded stocks and oil futures and earned a consistent 3 percent return. But the accounts Hayes used apparently never existed and Crossfire was never properly registered.

Hayes reportedly used some of the money gained from his scheme to buy a $4 million yacht.

Shortly after his arrest the government seized that yacht as well as two bank accounts that contained approximately $1 million.

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