The United States Attorney's Office announced that a Grand Jury sitting in South Bend, Indiana, returned a 20-count indictment charging Thomas and Marietta Squibb with mail fraud, wire fraud, and conspiracy to commit mail and wire fraud, in violation of 18 U.S.C. §§ 371, 1341, and 1343. The indictment charges that, since at least 1995, the Squibbs conspired to solicit investments to develop campgrounds in four Michigan cities – Charlevoix, Lansing, South Haven, and Traverse City – and condominiums in Naples, Florida, and used the mail and interstate wires to advance this scheme. In fact, the Squibbs did not use investors' funds to develop campgrounds in the four Michigan cities or to develop condominiums in Naples.

Thomas Squibb represented that, if money was invested with Squibb Ventures for these projects, he could provide high, guaranteed rates of return over short periods of time. Thomas Squibb also informed investors that, if something happened to him, Marietta Squibb could handle the investments because she was aware of them. Marietta Squibb signed promissory notes, received correspondence from investors, and called investors regarding their investments.

In particular, the Squibbs represented that, on behalf of a millionaire in Michigan, they were developing campgrounds affiliated with Kampgrounds of America ("KOA"). Thomas Squibb said that this millionaire wanted the campgrounds developed for his children. The Squibbs told investors that only a limited number could participate in the development of each campground. To entice investors, Thomas Squibb represented that their investments were loans, and that any earnings were not taxable. He also told investors that their funds would be held in an escrow account and would be returned within thirty days upon request. To memorialize these transactions, the Squibbs provided investors with promissory notes stating that the Squibbs would repay the principal to the investors, and would pay interest at a certain percent per annum, on particular dates. To obtain money from investors, Thomas Squibb would require the investors to wire money to his bank accounts or mail checks to him, or would personally receive the checks from the investors.

Rather than using investors' money for the identified developments, the Squibbs simply withdrew the money from their bank accounts for other purposes or used the funds to pay other investors. When payments to investors were delayed, the Squibbs provided multiple excuses, including that the wife of the millionaire in Michigan had died; that the Squibbs did not have the millionaire's telephone number; that the millionaire was traveling outside the United States; that there were delays in obtaining approval from zoning, health, and environmental authorities; that there were inaccuracies in documents relating to the properties; that previous owners of the properties refused to cooperate in transferring ownership; that a lawsuit relating to one of the properties was postponing its development; and that an underground lake had been discovered beneath one of the properties.

The Squibbs obtained millions of dollars in investments from hundreds of investors over at least a decade. The total amount of principal that was not returned to investors exceeds $3 million, not including promised interest payments. The Squibbs used more than 10 bank accounts to accomplish this scheme.

These charges were filed as a result of an investigation by the Federal Bureau of Investigation and the Indiana Secretary of State. This case has been assigned to and will be prosecuted by Assistant United States Attorney Jesse M. Barrett.

The specific sentences to be imposed upon conviction will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines. The United States Attorney's Office emphasizes that an indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.