Crime & Safety
Frederick Darren Berg Escapes From Calif. Penitentiary
Berg, from Mercer Island, was sentenced in 2012 to 18 yeas in prison for orchestrating the largest ponzi scheme in Washington history.
MERCED, CA - Frederick Darren Berg, the mastermind of the largest ponzi scheme in state history, escaped from a federal prison in California Wednesday, according to the U.S. Bureau of Prisons. Berg is simply listed as "escaped" on the prison website.
The Seattle Times reported Berg "walked away" from the USP Atwater facility, which is a minimum security work camp.
Berg, 55, was sentenced to an 18-year sentence in 2012 in U.S. District Court in Seattle. He was found guilty on charges of wire fraud, money laundering, and bankruptcy fraud, according to the U.S. Attorney's Office. Berg was also forced to pay more than $100 million in restitution.
Find out what's happening in Mercer Islandfor free with the latest updates from Patch.
Berg's Meridian Group invested money for clients in various real estate deals, which all turned out to be ponzi schemes.
Seattle Mayor Jenny Durkan, then the U.S. Attorney in Seattle, prosecuted Berg and said at the time, "The greed in this case is stunning. This defendant stole and squandered the dreams of hundreds: dreams of retirement, dreams of homeownership, dreams of a college education for their children and grandchildren. While we could not restore those dreams, today he was held accountable for his acts.”
Find out what's happening in Mercer Islandfor free with the latest updates from Patch.
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