According to reports, CEO and president of DBSI, Douglas L. Swenson, was convicted of thirty-four counts of wire fraud and forty-four counts of securities fraud. Three other top DBSI executives were also convicted on multiple fraud charges. The jury convicted Ellison, 65, of Boise, David Swenson, 36, of Boise, and Jeremy Swenson, 41, of Meridian, on forty-four counts of securities fraud.

The Idaho Statesman reports that prosecutors described the fraud as a Ponzi scheme, however the term was prohibited from use in court. Prosecutors claimed that DBSI used money from new investors to make payments to old investors. The company filed for bankruptcy in 2008 when they no longer could meet payment obligations.

In a written statement, the U.S Attorney Office for the District of Idaho said ” the United States presented evidence that the defendants publicly represented that DBSI was a profitable company and had a net worth in excess of $105 million when they knew that DBSI’s real estate and non-real estate business activities were universally unprofitable.”

Sentencing date has not been set. The four defendants face up to 5 years in prison for each count of securities fraud. Douglas Swenson could face up to 20 additional years for each count of wire fraud.

The U.S Attorney’s Office statement said that the company will have a “firm restitution obligation” to DBSI investors.

Unfortunately, it is unknown if the company has the funds to repay investors for the financial losses they have suffered. As such, The White Law Group is investigating other avenues for investors to recover their losses, including the liability of broker-dealers that sold DBSI investments.

Broker-dealers have responsibility to perform adequate due diligence to determine the legitimacy of any investment and the likelihood of success. In addition, broker-dealers must have a reasonable bases for all investment recommendations based on the client’s age, net worth, investment experience, risk tolerance, and investment objectives. If a broker-dealer fails to perform adequate due diligence or makes unsuitable investment recommendations they can be held liable for investment losses.

To determine whether you may be able to recover investment losses incurred as a result of your purchase of a DBSI investment, please contact the securities attorneys of The White Law Group at 312-238-9650 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group, visit www.WhiteSecuritiesLaw.com.