Ex-Minnesota Vikings tight end Stu Voigt and his business partner Jeffery Gardner will stand trial on criminal charges of defrauding investors. Federal prosecutors consider their business a $20 million Ponzi scheme, where they put investors' money on a real estate development that gives false promises of healthy annual returns.
According to MPR News, court documents state that the accused took investors' money and placed them in Hennessey Financial, a business owned by Gardner. The documents alleged the two of misrepresenting the real financial health of the company. According to authorities, Hennessey came up with new companies and made more loans without revealing their real financial conditions as their company started to decline. This allowed them to funnel the money away from Hennessey.
Voigt, who played for the Vikings for 10 years from 1970 to 1980 and was a broadcaster for the next 20 years, is charged with falsifying a loan application and bank fraud, while Gardner is facing the same charges and an additional mail fraud.
CBS Minnesota reported that both pleaded not guilty to the alleged Ponzi scheme charges. The US Attorney's Office said that Hennessey Financial promised 10 to 20 percent annual returns to the investors. However, the money invested was only allegedly used to pay previous investors and pay off the other debts that Gardner owes to other companies.
Meanwhile, Voigt's lawyers Joe Friedberg and Andy Birrell delayed their opening statement until the middle of the trial.
"Everything Stu did was in good faith," said Birrell in a report by Star Tribune. "Stu lost all his money in this, and the government is telling people he got all his money out of it, and that's false."
Voigt may testify in his defense and use memory issues due to concussions during his football playing days as defense. Also, Voigt invested $4 million of his own money in the business.
