Investment Adviser Indicted On Fraud Charges

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ATLANTA,None - An Atlanta investment adviser stands accused of being a mini-Madoff.

The indictment against bankrupt businessman Charles Vaughn spells out 14 fraud counts and $1.5 million lost.

"I got in on it at the end and I got taken down," said Dan Johnson.

"How much money are we talking for you?" Channel 2's Jim Strickland asked.

"I don't want to say the exact figure, but several hundred thousand," Johnson said.

Johnson said he's thrilled that Vaughn is now facing criminal charges, but the indictment doesn't list Johnson's money.

Nor does it include money from other investors who helped pay for the house, the Armani shoes, the Rolex , the fishing boat and the other luxury items Vaughn bought with cash. So says the bankruptcy trustee.

Indictment Against Charles M. Vaughn

"He spent millions of dollars living a luxurious life," trustee Neil Gordon told Strickland in 2008 during Strickland's initial investigation.

Vaughn is officially accused of defrauding only eight investors.

Prosecutors said the charges represent only a sample of the scheme. They said upon conviction on all counts, at sentencing Vaughn would face justice on a $7 million theft.

Vaughn's attorney said he's is out on $50,000 bond. Steven Berne said his client looks forward to challenging the charges.