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0 of 3 Premium Clicks used this month SUBSCRIBE Print + Online Subscriber Activation | Register x Forgot Password | Need an Account? e-edition | subscribe | newsletter | deals Classifieds Jobs Autos Real Estate FEATURED » NEWS NOW Saving Mr. Jake ... Since You Asked: 3-D software controls 1st down line on TV ... Jackson County deputy honored for saving man's life ... Saving Mr. Jake ... Since You Asked: 3-D software controls 1st down line on TV ... Jackson County deputy honored for saving man's life ... EUGENE Berjac of Oregon faces mail fraud, money laundering charges Loan agency built $40 million Ponzi scheme, authorities say Comment By The Associated Press MailTribune.com By The Associated Press Posted Nov. 29, 2015 at 2:00 AM By The Associated Press Posted Nov. 29, 2015 at 2:00 AM » Social News PORTLAND — Berjac of Oregon attracted investors through a basic business model, but prosecutors say at some point, the company started making risky bets on real estate and investors had no idea. The Eugene-based firm extended short-term loans so small businesses could cover insurance premiums. Investors made money as borrowers paid back those loans with interest. Stable returns and low risk kept the business going for decades, the Oregonian reports. By the time Berjac toppled in 2012, prosecutors say executives had constructed a $40 million Ponzi scheme that hurt more than 400 investors. Now, four members of Berjac's founding family face federal criminal charges. A grand jury indicted brothers Gary and Michael Holcomb, as well as Michael's daughters Jennifer Chalmers and Kristen Van Breemen on Nov. 19. They were charged with 24 counts, including conspiracy, mail fraud and money laundering. The brothers, now in their 70s, also face bank fraud charges. Fred "Jack" Holcomb founded Berjac 50 years ago. It expanded to satellite offices in Oregon, Colorado and Washington. Prosecutors say by 2008, the defendants had started steering investors' money away from the insurance-premium business. They bought a family vacation home and sunk millions of dollars on failed real estate projects. They arranged credit lines and tapped them to bolster the firm's portfolio. And they used money from recent investors to repay earlier ones — a Ponzi hallmark. As Berjac's finances began to buckle, investors were apparently kept in the dark. "Defendants failed to disclose to investors that Berjac of Oregon and Berjac of Portland were insolvent and acted as a Ponzi scheme — that is, the insurance premium financing business had not generated sufficient returns from which to pay interest and redemptions to investors," the indictment said. Jennifer Chalmers was the only defendant who could be reached by The Oregonian. "At this time, I'm not ready to discuss that," she said before hanging up the phone. No attorney is listed as representing Chalmers or her relatives. By The Associated Press MailTribune.com By The Associated Press Posted Nov. 29, 2015 at 2:00 AM » Comment or view comments Reader Reaction » STAY INFORMED Email NewsLetter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Southern Oregon Directory Featured Businesses Loading... Business Name address Location, ST | website.com Find Southern Oregon Attractions Bars Restaurants Beauty Salons Entertainment Doctors Medical Specialists Contractors Education Lawn Services Lawyers Shopping Travel Tanning Used Cars Wedding Services ▼ Add your business here + Events Calendar Connect with MailTribune.com Facebook Twitter RSS Back to top Reader Services Reader Services Home Subscriptions Subscriber controls Contact us Submissions Photos Events Letters to the editor Corrections Announcements Obituaries Story ideas Since you asked Alerts Email Alerts RSS Feeds Text Alerts Advertise Media Kit Home Products and services Ad rates Advertising contacts Propel Marketing Mail Tribune Daily Tidings The Nickel Shop Our Valley Blogs Mobile Site Stay Informed Email newsletter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Your privacy is important, read our privacy policy. © Copyright 2015 Local Media Group, Inc. All Rights Reserved. Privacy Policy | Terms of Service | Local Media Group Publications Original content available for non-commercial use under a Creative Commons license, except where noted. MailTribune.com | P.O. Box 1108, Medford, OR 97501