Former Scientologist indicted in financial scheme that victimized other ex-church members - 2014-10-14
Frank Pate On August 13, a man named Frank Pate was indicted on federal wire fraud charges in the Eastern District of Texas. According to Pate himself, who has written a short blog about his legal troubles, he was arrested in Phoenix on September 2 and arraigned in Texas later in the month. At the arraignment he entered a plea of not guilty.
Pate was the CEO of something he called the Infinity Companies, an investment firm. According to the indictment, from July 2004 to April 2013 Pate perpetrated "a scheme and artifice to defraud persons and to obtain money and funds from persons by means of false and fraudulent pretenses."
The indictment accuses Pate of using new investors to pay off earlier investors, a method which is known as a "pyramid" or "Ponzi scheme."