FARGO - Cass County prosecutors have charged an insurance agent here with 78 felonies accusing him of stealing more than $5 million from clients.
A warrant was issued Wednesday for the arrest of Larry Atkins, Fargo. He is scheduled to appear on the charges at 3:30 p.m. today.
In total, Atkins is charged with 77 Class B felonies including charges of engaging in fraudulent practices, selling unregistered securities, and transacting business as an unregistered agent. Atkins also is charged with one Class A felony charge of exploiting a vulnerable adult.
A search warrant filed in Cass County District Court details the investigation leading up to the charges and includes a stipulation from Atkins, 65, acknowledging that he owes more than $1.5 million to investors in North Dakota.
Atkins' defense attorney Jeff Bredahl was unavailable for comment Tuesday.
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An investor notified authorities in April about a $50,000 investment in securities with Atkins that raised suspicion. The woman provided a copy of the promissory note to investigators.
The North Dakota Securities Department has not received filings regarding the promissory note and Atkins was not a registered securities agent at the time of the investment, which is required by law.
Several other investors came forward with similar claims after the North Dakota Insurance Department issued a cease and desist order in April against Atkins.
Most of Atkins' victims were elderly and had invested their life savings with him. Some refinanced homes they already had paid off and recommended family members and friends also invest with Atkins.
Many victims had previously purchased insurance through Atkins.
One of the victims includes a 66-year-old disabled Fargo widow who invested nearly $400,000 with Atkins and was depending on her income from her investments with Atkins for basic living needs and to pay for her caregivers.
Investigators also spoke with convicted felon David Skjerven, who told them he and Atkins were former business partners who used a Ponzi scheme involving their clients that dates back to the early 1990s.
The scheme involved promising high returns and taking money from new investors to pay off the interest and principal payments to other investors.
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Skjerven pleaded guilty to 38 felony counts in Cass County in February that call for him to serve two years in prison and pay more than $1.3 million in restitution for defrauding 21 investors.
Skjerven told investigators that Atkins "taught him how to use the promissory notes as a way of obtaining funds to pay for personal and business expenses when commission income was lacking."
