Former CPA Dan Wise has been arrested and charged with operating a $67 million fraud.

Police in Scottsdale, Ariz., charged Wise, 52, with fraud and theft last Wednesday, according to the Arizona Republic. Search warrants were issued for his home, offices, and a storage building. Earlier this month, the Securities and Exchange Commission revoked his license to practice before the commission and accused him of defrauding 125 investors, including friends, family and accounting clients, out of the money (see SEC Says Arizona CPA Ran $67M Ponzi Scheme).

The Arizona Board of Accountancy had revoked Wise's CPA license last December, accusing him of violating ethics rules and misappropriating his client's tax payments that were supposed to go to the IRS.

Wise allegedly claimed that he was investing their funds in short-term real estate-backed loans and promised returns of between 12 and 22 percent. He told investors they could withdraw their money within 24 to 48 hours' notice and that the funds were fully secure. Instead, according to the complaint, Wise allegedly never funded the loans, nor paid the returns or redemption requests.

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