Washington State Department of Financial Institutions

DFI Update

Thursday, February 09, 2012


Lyn Peters, Director of Communications
PH (360) 902-8731 lyn.peters@dfi.wa.gov

An update from DFI:

Frederick Darren Berg Sentenced To 18 Years In Prison

Frederick Darren Berg was sentenced to 18 years in prison in U.S. District Court on February 9, 2012 in connection with a fraudulent scheme in which investors lost over $100 million. See the press release from the U.S. Attorney’s office for more information. www.justice.gov/usao/waw/press/2012/feb/berg.html

In addition to participating in the federal criminal investigation of Berg, the Securities Division of the Department of Financial Institutions brought an administrative action against Berg, some of his companies, and some of his associates for violations of the Securities Act of Washington. DFI issued its statement of charges in September 2010. See the statement of charges: www.dfi.wa.gov/sd/orders/S-10-250-10-SC01.pdf.

DFI issued a final order against Berg in October 2010. See the final order:www.dfi.wa.gov/sd/orders/S-10-250-10-FO01.pdf

DFI also entered into consent orders with the other parties to the statement of charges.