TUCSON, Ariz. — A former Tucson businessman accused of a Ponzi scheme to defraud investors is pleading not guilty to all charges.
The Arizona Daily Star reports Herbert Kay entered the pleas Friday in Pima County Superior Court.
According to the indictment, Kay faces 15 charges including theft, illegal control of an enterprise, money laundering, sale of an unregistered security and fraudulent schemes and artifices.
Arizona Attorney General Tom Horne says in court documents that Kay collected $200,000 total from five victims to invest. Horne says Kay used the money to pay previous investors.
Kay, who used to write a business column for the Tucson Citizen newspaper, has denied any wrongdoing. Kay, who currently resides in Los Angeles, says his business simply failed and he has repaid some people already.